Ageing population challenges in Sweden

Ageing population challenges in Sweden

The aging population trend will implicate political challenges in Sweden as in many other countries. The demographic dependency ratio is often used as a measure to estimate the economic consequences of the population development. The dependency ratio has been relatively constant since the 1960s with a level of around 70, meaning that 100 of working age are to support 70 young and old people outside of working age. Due to Statistics Sweden’s latest population forecast, this level is expected to increase to more than 90 persons per 100 of working age. That is if the retirement age remains at the current level of 65 years.

The study examines consequences of alternative fertility and immigration assumptions. What happens with the ratio if fertility or immigration increases or decreases? Can immigration be a solution? Or can other measures be taken to keep the dependency ratio constant? It turns out that a raised pension age is an effective measure.