Ageing and Shrinking Populations

Global life expectancy at birth has increased from 46 years in 1950 to 74 in 2025, with a growing number of individuals reaching centenarian status. Credit: Shutterstock

By Joseph Chamie
PORTLAND, USA, Jan 16 2026 (IPS)

Ageing and shrinking populations are becoming more prevalent in many countries around the world.

A growing number of governments are now grappling with these dual demographic challenges, which are becoming increasingly apparent. The demographic challenges posed by ageing and shrinking populations have significant impacts on society, affecting various economic, social, and political issues.

Governments are increasingly being forced to address the economic impact of supporting a growing number of retirees who are living longer with a decreasing number of workers. These changes are starting to have noticeable effects on pension programs, healthcare systems, and social safety nets.

In approximately 63 countries and areas, which make up about 28 percent of the world’s population of 8.2 billion in 2024, the size of their population has peaked before 2024 and is now shrinking. In 48 countries and areas, representing 10 percent of the world’s population in 2024, the population size is projected to peak within the next fifty years (Figure 1).

 

 

In the remaining 126 countries or areas, accounting for 62% of the world’s population, their populations are expected to continue growing until 2055, potentially reaching a peak later in the 21st century or beyond.

In addition to populations shrinking, many countries have experienced a “historic reversal” in their age structures. This significant demographic milestone occurs when the percentage of individuals aged 65 and older exceeds the percentage of those aged 17 and younger. In simpler terms, it is when older adults outnumber children in a population.

The first historic reversal took place in Italy in 1995 during the 20th century. Five years later, it occurred in six more countries: Bulgaria, Germany, Greece, Japan, Portugal and Spain.

By 2025, 55 countries and areas had experienced a historic reversal, with more countries expected to undergo the same soon. Particularly striking are the demographics of Italy and Japan, where besides having shrinking populations, the percentage of people aged 65 and older is roughly twice as large as the percentage of those aged 17 and younger (Figure 2).

 

 

The primary demographic forces driving the ageing and shrinking of populations are fertility rates below replacement levels, increased longevity, and limited immigration.

Globally, more than half of all countries and areas have a fertility rate below 2.1 births per woman, which is considered replacement level fertility.

In many cases, the fertility rates of countries in 2024 have dropped significantly below replacement levels. For example, South Korea (0.73), China (1.01), Italy (1.21), Japan (1.22), Canada (1.34), Germany (1.45), Russia (1.46), United Kingdom (1.55), United States (1.62), and France (1.64) all have fertility rates below replacement levels (Figure 3).

 

 

Global life expectancy at birth has increased from 46 years in 1950 to 74 in 2025, with a growing number of individuals reaching centenarian status. In 50 countries and areas, immigration is expected to mitigate future declines in population size.

One action to address ageing and shrinking populations is to recognize demographic realities and tailor governmental policies and programs accordingly.

However, many governments are hesitant to accept the ageing and shrinking of their populations. These governments have implemented strategies aimed at combating these significant demographic trends.

Around 55 countries have adopted policies and incentives aimed at increasing their fertility rates in hopes of reversing the ageing and shrinking of their populations. However, considering recent global trends and various economic, social, developmental, cultural, and personal factors, it seems unlikely that today’s low fertility rates will return to the replacement level any time soon.

Various policies have been implemented to address ageing and shrinking populations. These policies are wide ranging and include increasing taxes, raising retirement ages, enhancing productivity, increasing female labor force participation, permitting medically assisted suicide, relying on immigration of workers, promoting equality between men and women, and reducing expenditures on pensions and healthcare for older adults (Table 1).

 

 

Most governments are investing significant financial resources in pensions and healthcare for older individuals. Some government officials argue that spending money on the elderly, while their workforce populations are declining, is not economically sound.

They believe that excessive expenditures on the older adults yield little on investment and is an unadvised economic practice. They suggest raising the retirement age to receive pensions and encouraging people to continue working in old age, particularly those who currently rely on government pensions, healthcare, and support.

By 2025, 55 countries and areas had experienced a historic reversal, with more countries expected to undergo the same soon. Particularly striking are the demographics of Italy and Japan, where besides having shrinking populations, the percentage of people aged 65 and older is roughly twice as large as the percentage of those aged 17 and younger

Instead of depending on government-funded programs to take care of older adults, some government officials believe families should care for their elderly and frail relatives as has been the case throughout much of the world’s history.

For the many older adults who currently rely on government pensions and assistance, some government officials believe these individuals should be encouraged to join the workforce and achieve financial independence.

While many governments provide or regulate pensions and healthcare, the government’s role remains a subject of political and economic debate in numerous countries with the level and type of government programs varying significantly across nations.

In contrast to the debate among governments, most citizens in these countries believe that their government should continue to provide pensions, healthcare, and assistance to older adults.

A survey conducted in six European countries (Britain, France, Germany, Italy, Poland, Spain) and the United States found that the majority of their populations recognize the future financial difficulties facing government pensions.

Most people in the surveyed countries felt that the value of the state pension is too low and opposed common reform options such as raising the retirement age or reducing funding for services for older people. Additionally, most non-retired individuals were not confident that they will live comfortably in retirement.

Ageing and shrinking populations are two significant demographic trends for the 21st century. These powerful and widespread demographics are presenting formidable challenges for many countries worldwide.

Instead of trying to revert to past demographic levels, governments should acknowledge the ageing and shrinking of their populations and act accordingly to address the many challenges that arise from these trends.

Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division, and author of many publications on population matters.