Europe is aging—it’s high time to invest in youth
The old world is getting older. The populations of European Union (EU) countries are aging and shrinking. Life expectancy at birth in the EU has increased by more than two years per decade since the 1960s to 78 and 84 years in 2016 for men and women respectively. It is projected to further rise by 8 and 7 years for men and women respectively by 2070, pushing the share of the population over 65 to 30 percent by 2070 (up from 20 percent today).
Europeans should be happy about the prospect of living longer lives, if they can spend these additional years active and in good health. But increased longevity in Europe has come with growing anxieties about future living standards. Will aging put a break on economic growth? Can pension systems guarantee an old age free of poverty? And will pension systems remain affordable as the ratio of workers to pensioners shifts? Luckily, there is good news: If all of Europe’s workers are economically active and become more productive during their longer working lives, the aging of the population need not be a drag on growth and public finances.
Read More: Brookings
