The planet is ageing rapidly and becoming more crowded, writes Joel Achenbach.
ON THIS crowded, trampled planet, one of the most vexing trends is something countless of us see when we look in the mirror: we are going grey. The United Nations has declared that the human population has hit 7 billion, and an expanding percentage of those people are in the market for reading glasses.
The ageing of the human race has been faster than anyone could have imagined a few decades ago. Fertility rates have plunged globally and life spans have increased. The result is a new age graph the pyramid, once with a small number of old folks at the peak and a broad foundation of children, is inverting. In wealthy countries, the graph already has a pronounced middle-age spread.
Longer life is a blessing of modern medicine and nutrition, while lower fertility corresponds to greater prosperity and education. Women have gained more control over their reproductive lives.
But the unexpectedly abrupt demographic transition has created economic upheaval. For the countries that hit the fertility brakes the hardest, the greying of society has become a full-blown crisis. They are suddenly desperate for babies. They need more workers to provide goods and services to huge numbers of pensioners.
The fertility rate in Germany, Italy, Spain, Greece and many other nations is less than 1.5 children per woman, dramatically lower than the "replacement" rate of 2.1 children. Japan (fertility rate 1.4) is already the oldest country in the history of the world, while China (1.5) is racing to get rich before it becomes old.
In far better shape is the US, with a fertility rate just slightly below replacement level. Immigration boosts the country's workforce. But the baby boom generation is storming the higher age brackets.
"There are many countries, more all the time, that are going to be looking at a population implosion rather than a population explosion," said Matthew Connelly, a Columbia University professor of history and the author of Fatal Misconception: The Struggle to Control World Population.
The ageing of the world will change cultures in myriad ways. People may have to extend their working lives far beyond the traditional retirement age.
Countries may start competing for immigrants. Vast numbers of people are already migrating from high-fertility countries to those which need workers.
The planet as a whole does not have a baby shortage. Every minute of every day, according to the Population Reference Bureau, the number of births exceeds the number of deaths by 158. But the growth is not spread out. Of that net increase, 154 are in the developing world.
It is unclear how big the human population will get. The most likely scenario, the UN said, will put the population at 10 billion at the end of this century and growing only modestly. But a relatively small boost in the predicted fertility rate could result in a world with 16 billion people a decrease could mean a drop to 6 billion.
Frequently Asked Questions about this Article…
What does 'global ageing' or an 'ageing population' mean for everyday investors?
Global ageing refers to the shift in the world’s age structure as fertility rates fall and life expectancy rises — the classic population pyramid is inverting. For investors this demographic change can signal long-term economic shifts: a larger share of older people, potential strains on public finances and pensions, and changes in workforce size and consumption patterns.
How fast is the world population ageing and how big is the population now?
The article notes the human population recently reached about 7 billion, and ageing is happening faster than expected because fertility has plunged while life spans have increased. The United Nations projects a most likely scenario of about 10 billion people by the end of this century, though outcomes could range from roughly 6 billion to 16 billion depending on future fertility rates.
Which countries are already feeling the effects of low fertility and an ageing population?
Several wealthy countries are already significantly aged. The article cites Germany, Italy, Spain and Greece with fertility rates under 1.5 children per woman, Japan at about 1.4 (described as the oldest country in history), and China around 1.5. The US is in better shape comparatively, with fertility just slightly below replacement and immigration helping its workforce.
Why do falling fertility rates matter to investors and economies?
Falling fertility reduces the future pool of workers, which can create economic upheaval: fewer workers to support rising numbers of pensioners, pressure on public budgets, and potential labour shortages. The article highlights that some countries are becoming desperate for babies and may need policies to boost births or attract immigrants.
How might ageing populations affect retirement ages and workforce participation?
The article suggests that ageing societies may need people to extend working lives well beyond traditional retirement ages. Countries could also compete to attract immigrants to bolster their workforces, and large migration flows from high-fertility to low-fertility countries are already underway.
Where is most of the world’s population growth happening and why does that matter for investors?
Most net population growth is concentrated in the developing world: the Population Reference Bureau figure cited says every minute there are 158 more births than deaths worldwide, and 154 of those net additions occur in developing countries. For investors this concentration can mean shifting consumer markets, labour supply dynamics, and geopolitical implications over the long term.
Should investors be concerned about a 'population implosion' in some countries?
The article quotes experts warning that many countries could face a population implosion rather than explosion as fertility falls. For investors, this raises concerns about shrinking domestic markets, labour shortages and increased fiscal pressure to support ageing populations — issues worth monitoring in affected countries.
What demographic indicators should everyday investors monitor to understand long-term risks and opportunities?
Based on the article, investors should watch fertility rates, life expectancy trends, national population projections (such as UN forecasts), immigration flows, and the size of older age cohorts. These indicators can signal potential changes in workforce size, pension burdens and consumer demand over decades.