Aging Europe

Description:

According to new research conducted by the McKinsey Global Institute (MGI) the composition of Europe’s demographic will undergo dramatic changes. By 2025, one in five Europeans will be more than 65 years old, up from 16 percent in 2002. This will result in a big gap between an increasing number of retired citizens and a decreasing number of working citizen. Retired citizen tend to consume their savings as working citizen create most of those savings. Therefore, the absolute level of savings will plunge across most of Europe. That is a threat to Europe’s high living standards and economic well-being.

Enablers:

• Advance medicine and preventions
• High living standards and conditions
• More health awareness
• Declining birth of new babies

Inhibitors:

• Productivity growth in European countries
• European Labour Market Reform, more flexible labour policies and increase the incentives to work

Paradigms:

The aging of European populations will threaten living standards and prosperity.

Experts:

• United Nations
• EU
• Organization for Economic Cooperation and Development
• Centraal burau voor de statistieken (CBS) for Dutch figures and trends

Timing:

n/a

Web Resources:

• Anti-aging Europe http://www.antiaging-europe.com/
• MGI The Coming Demographic Deficit: How Aging Populations Will Reduce Global Savings http://www.mckinsey.com/mgi/publications/demographics/index.asp
• OECD http://www.oecd.org/searchResult/0,2665,en_2649_201185_1_1_1_1_1,00.html
• The economic impact of an aging Europe http://mckinseyquarterly.com/article_abstract.aspx?ar=1613&L2=7&L3=10
• The New York Times - An Aging Europe May Find Itself on the Sidelines http://www.forourgrandchildren.org/pressroom/articles/2003-06-29-An_Aging_Europe.pdf http://select.nytimes.com/gst/abstract.html?res=F30D15FC3C5E0C7A8EDDAF0894DB404482