When an overwhelming proportion of the population is elderly, an overwhelming proportion of the working age populations earnings have to will go to support them. This is measured by an economic ratio known as the dependency ratio which is going to get out of hand for countries like Japan. The strain on public finances paying for pensions and healthcare reduces quality of life for everyone in the country and depresses economic growth as young people working to support the countries elderly population and their own parents have less to invest in the wider economy.
When an overwhelming proportion of the population is elderly, an overwhelming proportion of the working age populations earnings have to will go to support them. This is measured by an economic ratio known as the dependency ratio which is going to get out of hand for countries like Japan. The strain on public finances paying for pensions and healthcare reduces quality of life for everyone in the country and depresses economic growth as young people working to support the countries elderly population and their own parents have less to invest in the wider economy.