The Effects of an Ageing Population
The Effects of an Ageing Population 1. Think of some examples of goods and services for which demand will rise as a consequence of ageing Population. How should marketers address this new buyer segment? For examples, life expectancy In the US has increased from 45 in 1902 to 75. 7 In 2004; one of the greatest achievements of the twentieth century is a dramatic rise in life expectancy. However, declining birth rates combined with increased life expectancy had caused to worry more about the value of an ageing population.
Frequently, we hear about ‘demographic time bombs’ and the fear future generations ill grapple to meet an Increasing number of retired workers and pension commitments. There is interrogation about the world’s ageing population. As the table that shown above (5. 9), in the world there are 6. 9 billion people over 80 years old, this Is the fastest growing part of the population in 2000_ There are the fastest growing segments for all parts of the world are the older ones, for the more developed countries reduction In the size of O to 59 age groups are forecasted.
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The predictions are made on the suppositions that present trends in life expectancy and ertility rates will continue. There are two main reasons of the world population ageing – increased life expectancy and lower fertility. Figure 5. 1 shows the fertility and Figure 5. 2 shows the same group of the world’s population In 1950 and 2050 between the life expectancy. Fertility rate dropped significantly in 1950 and 2000, and this trend is expected to continue into the future all parts of the world.
All around the world In life expectancy has risen opposite and Is also expected to continue to do so. These two trends together, means that the average age of the world’s population Increases, of course, vary considerably between countries, but the general situation Is convergent. Table 5. 10 shows the selected product in 2002 in the UK weekly expenditure. It can be seen; the older age groups spend less beer and cider, cigarettes and visiting the cinema or theater, but in the united Kingdom and the health Insurance holiday younger age groups.
As companies respond to these changes will shift resources towards services, which will bring further changes in the Industrial structure. There are great differences in the pattern of demand, increase with age and, if the rey-scale population growth companies will have to respond to changing needs. If you repeat the experience of the united States, the world’s grey population will spend more for education and leisure services. Many retirees are returned to education opportunities to pursue their own Interests.
An Important part of marketing has long been recognized as demographic change Environment and needs continuous monitoring. This is especially true in the united States, and now the trend Is clearly an early start In Europe, a large elderly population, affluence and has great market power in the case. Older consumers are alled “woof” Market merchants – Rich old folk- as an Important part of the market. to De accepted currently at tne age 0T 40 Is called I Ir ” n a Age ” wnen tney arrlvea 50- age groups, they will have more free time; have better health, more money and higher expectations than their predecessors.
Third agers in the United States have a higher demand for education and leisure services than their predecessors – they use a lot of sports centres, cinemas and evening classes. Equally important is the population in the market segment marketing, there are numerous examples in which the separation factor of age. Identify the different needs and hopes the festival market in different age groups are 18-30 holidays cater to the young company, and Saga Holidays cater to 50 years of age.
Interestingly, that have been made to give advice, Saga Holidays are often associated with young tourists now provide what holidays – such as elephant trekking in Nepal. 2What types of policy can organisations use to: (a) Encourage the older worker to stay in employment for longer? To encourage the older worker to stay in employment for a longer period of time, then the firms need to aware the fearful things like: portion of young people recruited is too ggressive and advent of new technology. If the company has a lot of young people that the old people will not like it.
If the new technology is always updating then the old people cannot follow then they will less interest on the Job. Old people also don’t want to work with the young people then the old people are enlisted. For protected all of these things happen, the company needs to provide training to the workers and inexperienced staffs. Organization for Economic Cooperation and Development, the main objective is to share the experience of its 30 member countries, inform decision-makers and the public debate.
Mark Keith reports research policy discussion and debate, in six countries, aging and employment. Population aging is important, especially in human resources strategy within the organization. These industries employ young tradition. There will be fewer and fewer young people entering the labour market for two reasons: First, there is less and the second with a higher percentage and now live in the school. Other sources of the labour force will need to find to meet demand.
Meanwhile people continue to take early retirement in the United States, only 60 years old and 65 men between the ages of half still orking, in some European countries the proportion is much lower. Create a number of “early retirement” culture, and some have been punished individuals who wish to exceed the retirement age pension system exacerbate this policy in the 1980s and 1990s by the organization downsizing. Combination leave early means fewer young people entering the labour force in many countries employers and more people are facing engineering contracting market.
One possibility is that more and older people in the labour force participation. This means that age discrimination, human resource management practices, will have to change. Employers often view older workers are more expensive , not flexible enough , the lack of the necessary skills , but statistics show that over 40 age group will receive less training than other groups . Many of these studies have shown no difference between the age’s ability to acquire new skills.
This is often the case, older workers more reliable, more experienced less absenteeism than younger workers. Many employers around the world recognize this and are implementing policies to encourage older workers. Employment of older people will call for changes in recruitment practices. Reserves ill Decome more Important laDour organlzatlon, tnereTore, tralnlng ana development, will take greater significance. Work will need to be more attractive, more part-time or temporary contracts.
This may also overcome the impact of the cost that is a higher incremental pay scale of the old staff. According to the EIJ directive, but market forces have led some companies to take a different approach from the 2006 age discrimination will be banned in the European Union older workers. (b) Recruit older workers into the workplace? If the organization wants to recruit the older workers in the workplace, they must ake the older people to trust them. Example: the organization needs to provide health care services like free medical check-up, free screening, etc.
The old people want the security and more leisure. The organisation must provide the part-time jobs, work at home, more holidays for the older people. If the policy wants to recruit the older workers, then they need to make everything be convenience for the older worker. Example: the organisation must no age limitation, work fare, redesign work, retirement age, existing staff recommendation and work hour flexibility must vailable in the organisation. There are financial impacts of an aging population.
Potential support ratio (PSR) displays each person aged 65 and over the age of 1 5 to 64 years the number of people. It gives an indication of population aging on labour force dependency burden. This is between 1950 and 2002 fell from 12:1 to 9:1, and is expected to decline further to 4:1 by 2050 (see Table 5. 11). Table 5. 11 shows a similar pattern in the world – there will be increasing financial burden on working-age people, due to the aging population. In the overall figures there are obvious differences.
For example, in Japan, the ratio is expected in 2050, down from 4:1 in 2002 to . In the United States, immigration is generally higher (so aging is less obvious), from 5:1 to ratio is expected to decline. This means that a higher proportion of the population will depend on the support of a smaller proportion of the population- in health care resources and pension payments. Many countries are seeking their pension provisions to minimize the cost of dependence.
For example, in the UK there has been a change in the burden of providing pensions from the state to the individual; many companies have ended heir “final salary pension scheme. Nevertheless, it is still estimated to meet the needs of an aging population pensions, 2030 Britain needs a 5% average annual growth rate of GDP, which is much higher than the growth rate of the past in the I-JK state pension paid current taxes, but this is likely to change, so funds will come from the state pension investments is also possible that the retirement age will increase dependency, to reduce costs.
In addition to the cost of pensions, the increase in the average age of the population with health care and the impact of health care costs. In this case, although the study pointed out that the aging of the population than ever before, more healthy, of course, affect the demand for healthcare. For example Alzheimer’s 65-year-olds in the I-JK, this proportion is 5%, increased by more than 80-20%. Therefore, it is necessary to provide more medical care, whether by the State or individuals to do this.
The major changes of aging population are popular culture, in a period of time has been dominated by youth, crime – most offense is committed by young people, the crime rate dropped, family relationships, along with declining irth rates and longer life expectancy “beanpole” family structure will become the norm. It Is clear Trom tnls Olscusslon, In many parts 0T tne world are experlenclng population aging in many different areas of business have a great impact.