As populations age, pension reforms become urgent

THE world is ageing at a much faster rate than we previously anticipated even 10 years ago. Following the pandemic, life expectancies are continuing to rise around the world. We are going to live longer than previously expected. On average, some of the extra years will be spent in good health, but the years in poor health will also rise.

In almost all countries, fertility rates are dropping quickly. Simply put, the world is having fewer babies, with several societal changes driving this outcome. The following table indicates the change in fertility rates in the last 10 years for selected countries, based on data from the United Nations (UN).

Given that a fertility rate of 2.1 is required to replace the population, most countries are now on track towards reduced populations at some point in the future, if one ignores the impact of migration. China’s population has already begun to decline.