Economic Effects of demographic Ageing

Abstract

Romania goes through profound changes due to unprecedented demographic developments. As a result of declining birth rates and emigration after 1990, by the year 2060 is looming a possible doubling of the percentage of the population 65 years and over, from 15 to 30%, and the working age population to fall by about 30 percent. Deterioration of the relationship between the labor force and the inactive population leads to pressure on the public budget and tax system, strains on pension and social security systems, redefining consumer preferences, type, and size of the saved or spent amounts, higher demand for healthcare services, increasing poverty risk for elderly households.