According to the Organisation for Economic Co-operation & Development, 12.8pc of the population was aged 65 or older in 1970. That rose to 15.8pc in 2000 and is now 18.9pc, a jump that parallels western Europe. Supposedly awful!
In 2000 there were 27 Britons aged 65 and over for every 100 of working age. That number has since climbed to 33.2 and by 2075 the OECD projects it to be 53 – fewer than two workers to “support” every oldster. Allegedly terrible – and many other nations project something similar.
What to do? Cheer! Every major economy gets older as it prospers. As living standards increase, lifespans follow. Birth rates fall too, alongside infant mortality. In 1951 British males had a life expectancy of just 66.4 and females 71.5. Now it’s 78.6 and 82.6. And that is just within my lifetime (maybe yours too).
Look way, way back to the miraculous Industrial Revolution: life expectancies in Britain have roughly doubled since. Tremendous healthcare advances mean all those extra years are more fruitful and productive too. Hooray!
Doomsters conveniently ignore the crucial caveats of “good” demographics: countries that have the youngest populations (and, hence, the fewest over-65s relative to those of working age), which are mostly in Africa, sadly suffer poverty, short lifespans and high infant mortality.
Their economies and capital markets? Wretched. Youth doesn’t determine dynamism or booming markets.
History shows that, as economies develop, they get older, without killing economic growth or stock market gains.
Yes, the share of Britain’s population accounted for by the elderly climbed steadily between 1970 and the present, yet inflation-adjusted economic output more than doubled, while British stocks gained at an annualised rate of 10.3pc.
Fear merchants fret that more old folks will somehow wreck Britain.
