Addressing Economic Challenges of UK's Ageing Population

This essay delves into the economic challenges faced by the United Kingdom due to its ageing population. It identifies the core issue: a decreasing workforce relative to a growing number of retirees, leading to strain on the country's finances. The paper highlights the impact on revenue, particularly concerning pension schemes and the dependency ratio. Two potential solutions are explored: firstly, encouraging the employment of the retired workforce to boost economic activity and tax revenue; and secondly, adjusting tax policies to increase revenue. The essay analyzes the benefits and drawbacks of each solution, concluding that a multifaceted approach is necessary to mitigate the economic pressures of an ageing population. The paper also references several academic sources to support its claims.

Running head: AGEING POPULATION OF UNITED KINGDOM
AGEING POPULATION OF UNITED KINGDOM
Name of the Student
Name of the University
Author Note

1AGEING POPULATION OF UNITED KINGDOM
Introduction
The rise in the ageing population within the country has led to the greater setback that is
faced by the country in terms of the maintenance of the economy of the country. The following
paper attempts to shed light on the issues that are faced by the country of the United Kingdom in
terms of the revenue that is earned by the country. the essay sheds major light ion the issues that
stem from the increase in the ageing population within the country. The essay opens with the
discussion on the issues that are faced by the country in terms of the economy of the country.
The essay then proceeds to discuss two solutions that are required for the development of the
measures that would be helpful in the mitigation of the raised issues.
Issue identification
The major issue that is faced by the country of the United States refer to the concerned
ageing population within the country. The country has been facing huge issues due to the
lowering of the economic conditions within the country. The lowering of the economic inflow
within the country is considered to be one of the major issues that might be faced by the country
of the United Kingdom. The country has faced a drop in the overall ratio of the working people
to the people who have been aged over 65, the age of retirement (Beard and Bloom 2015). The
population of the country has been observed to have a larger number of people who have been
belonging to the age of 65 and above and is thereby observed to have been comprising of a larger
amount of the population beyond the stage of retirement (Bloom et al. 2015). This results in the
conditions wherein the government has to roll out a huge amount of finance for the pension of
the people who have retired. This leads to the decrease in the overall revenue that is earned by
the concerned country. The lack of a proper workforce within the country leads to the increase in
the dependency ratio within the population of the country. The increase in the life expectancy of

2AGEING POPULATION OF UNITED KINGDOM
the population of the country while the retirement age of the person is fixed, creates the
situations within the country wherein the number of people who have been seeking the
retirement benefits would increase (Samad and Mansor 2017). This would lead to the conditions
wherein the country would be facing claims form the concerned population for the pension
benefits which in turn leads to the conditions of the implementation of the higher amount of the
taxes that need to be paid by the working population within the country. There is observed an
increase in the amount of the taxes that need to be paid by the people who have been employed
within the country. The implementation of the high amount of taxes that are paid by the
workforces within the country tend to face a hike due to the lowering of the number of people
who might be charged taxes on their income (Holzmann 2017). The people who have been
belonging to the retired workforce within the country tend to be charged with the lower rates of
the income taxes due to the lower rates of income on their parts. According to Davies and James
(2016), the payment that the government needs to make towards the retired workforce within the
country is considered to be an expense on the part of the government and thus contributes to the
overall expense on the part of the government.
Solution 1 – Employment of the retired workforce
In order to deal with the above discussed issues, the government might be advised to
implement and open areas of wok for the retired population of the country. This in turn leads to
the conditions wherein the country faces a greater amount of revenues that are earned from the
employment of the people who have been beyond the age of retirement. This in turn leads to the
implementation of the involvement of the people within the active workforce of the country
(Buffel and Phillipson 2016). This leads to the conditions wherein the country faces the increase
in the inflow of the revenues that are earned by the working population of the country. The

3AGEING POPULATION OF UNITED KINGDOM
inclusion of the retired members within the workforce of the country further leads to their
contribution to the economic conditions within the country (Bloom, Canning and Lubet 2015).
This would further lead to the mitigation of the issues that have been resulting from the impacts
of the ageing population within the country. The impact of the ageing population on the
dependency ratio within the country is known to have been lessened due to the greater amount of
employment of the retired workforce of the country. The employment of the retired workforce
further leads to the conditions wherein the country is known to have faced a greater amount of
the benefits in terms of the tax receipts form the existing workforce of the country (McCann
2017). The employment within the country could further face an increase due to the development
of the scope of employment by facilitating the incorporation of the immigration of the employees
within the country. This in turn would help in the increase in the revenues that are earned by the
country thereby leading to the increase in the economic conditions that are faced by the
company. The majority of the conditions within the country dealing with the increase of the
people who have attained their retirement ages tend to be dealing with the issues that are related
to the development of the economic conditions within the country (Angeloni and Borgonovi
2016). The government has to roll out a huge amount of finance for the pension of the people
who have retired. This leads to the decrease in the overall revenue that is earned by the
concerned country.
Solution 2 – Increase in tax payment
The governmental bodies might further be advised to make revisions in the tax schemes
that are existent within the country. The increase in the amount of the taxes that need to be paid
by the existing working force of the country might lead to the increase in the revenues that are
earned by the country. There is observed an increase in the amount of the taxes that need to be

4AGEING POPULATION OF UNITED KINGDOM
paid by the people who have been employed within the country. The implementation of the high
amount of taxes that are paid by the workforces within the country tend to face a hike due to the
lowering of the number of people who might be charged taxes on their income (Nagarajan,
Teixeira and Silva 2016). The increase in the payment of the taxes lead to the growth of the
economy within the organization on the basis of the high amount of the that are paid by the
organizational workforce. The increase in the life expectancy of the population of the country
while the retirement age of the person is fixed, creates the situations within the country wherein
the number of people who have been seeking the retirement benefits would increase. This would
lead to the conditions wherein the country would be facing claims form the concerned population
for the pension benefits which in turn leads to the conditions of the implementation of the higher
amount of the taxes that need to be paid by the working population within the country (Woo
2017). The implementation of the high amount of the taxes that need to be paid have been
observed to be utilized by the government in providing the concerned aged population of the
country with the proper and the developed healthcare and lifestyle facilities. This in turn would
lead to the increase in the revenue that is generated by the health-care industries that have been
operating within the territorial boundaries of the country. The increase in the revenue earned by
the company however in turn leads to the overall growth of the concerned country as well
(Zimmer 2016). The payment that the government needs to make towards the retired workforce
within the country is considered to be an expense on the part of the government and thus
contributes to the overall expense on the part of the government. The increase in the revenue of
the healthcare facilities might further assist in the improvement of the revenue that is earned by
the country as a whole.
Conclusion

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In lieu of the above discussion, it might be concluded that the issues that are faced by the
concerned country might be mitigated through the implementation of the various solutions that
are suggested in order to deal with these issues. The inclusion of the retired members within the
workforce of the country further leads to their contribution to the economic conditions within the
country. This would further lead to the mitigation of the issues that have been resulting from the
impacts of the ageing population within the country. The employment of the retired workforce
further leads to the conditions wherein the country is known to have faced a greater amount of
the benefits in terms of the tax receipts form the existing workforce of the country. the concerned
authorities are also advised to deal with the increase in the tax payments on the part of the
existing workforce within the country.

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References
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