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The Ageing Population

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Ageing population is a worldwide pattern; it has major implications for the way in which programs designed to support older people are funded. While social security and means-tested social assistance programs for long-term care protect the living standards of the poor, middle income groups face under-appreciated risks, such as outliving their capital or needing expensive long-term care. This will cause economic, social, and political implications of a rapidly ageing population, which will affect society and businesses.
New Zealand, like many countries, has ageing population, with an increasing proportion of people in the older age groups and a declining proportion of children. Many impacts such as increase in the dependency ratio, increased government spending on health care and pensions, high taxes, shortage of workers, changing sectors within the economy, and higher savings for pensions may reduce capital investment can effect all societies. Since 1960, the proportion of the population under 15 years of age has declined from around 33% and is expected to fall to 18% by 2031. (Statistics New Zealand, 2009) According to New Zealand Parliament (2011), age population is a consequence of the baby boom which occurred in New Zealand. Compare with other countries' high fertility (the number of births per woman) and improved infant survival rate in the decades after the end of World War Two. New Zealand has one of the highest fertility rates in the developed countries, which have

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