Financial Stability And Ageing In Europe And The US: The Connection To Health And Retirement Systems

Abstract

An ageing population and expected future increases in the demand for long-term care services are important policy concerns in many European countries.  According to the 2010 Eurobarometer survey 73, Europe faces major structural changes – globalization, climate change and an ageing population (European Commission, 2010).  Many Europeans also feel that families have to provide too much support for their older, dependent persons. Similar concerns have been expressed by individuals and policymakers in the US (Kinsella and He, 2009). These concerns are further exacerbated by the recent global economic downturn and the European and US financial bailout packages, which are only a short-term remedy to the complex issue of ageing in these geographic areas. This paper looks at the health and welfare systems of Europe and the United States, the scope of graying demographics in these areas, and the impact that these factors have on future financial stability in light of our attempts to recover from the current economic downturn.  It also examines a number of potential solutions for economic recovery in an ageing society.