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In Japan 12% of the working population is aged over 65 years, whereas in the UK and Ireland the percentage is closer to 3% - Leaving Cert Economics - Question 9 - 2019
Question 9
In Japan 12% of the working population is aged over 65 years, whereas in the UK and Ireland the percentage is closer to 3%. (a) Outline two reasons why government p... show full transcript
Worked Solution & Example Answer:In Japan 12% of the working population is aged over 65 years, whereas in the UK and Ireland the percentage is closer to 3% - Leaving Cert Economics - Question 9 - 2019
Step 1
Outline two reasons why government policies might be changed to support extended working lives.
Answer
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Enlarged Labour Force: As the population ages, having a larger and healthier workforce is crucial. Medical advances increase life expectancy, allowing older individuals to continue working and contributing to the economy. Government policies would need to adapt to facilitate this.
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Increased Revenue for the Government: With older individuals remaining in the workforce, more people will be earning and paying income tax. This will increase government revenue, which could be beneficial in funding services and support for society.
Step 2
Suggest one measure which the government or firms could take to support extended working lives.
Answer
One measure could be to implement Pension Top-up Schemes. These programs would allow individuals to enhance their pensions by continuing to work beyond retirement age. By doing so, they could both supplement their income and ensure their financial security while contributing to the workforce.