Demographic Challenges and Economic Impact

The departure of the Baby Boomer generation from the workforce is set to create significant gaps in both the economy and social systems. As this generation retires, they will leave behind fewer workers to support an increasing number of retirees, shifting the ratio of workers to pensioners dramatically. For example, it is projected that the ratio could decrease to 1.5 workers supporting one retiree, which puts immense pressure on the labor market and social security systems. This demographic change raises substantial concerns regarding the sustainability of pensions, healthcare, and social services as the burden shifts onto younger generations, who may struggle to balance their own financial responsibilities with those of an aging population.