Ageing population

Meanwhile, low birth rates and longer lives create an ageing population, with older people forming a larger share of the total. The death rate may rise slightly because more people are in older age groups, even though healthcare remains good. This is not a return to the poor living conditions of Stage 1.

An ageing population can increase demand for pensions, healthcare and social care. If smaller young age groups replace larger retiring groups, labour shortages may develop and fewer workers may be available to help fund services through taxes. A country's overall death rate can rise as its population ages even when healthcare remains good.

An ageing population is one in which older people form an increasing share of the population. It describes a change in age structure, rather than simply population growth. A country can grow in population while also ageing, or become older without growing overall.