Report Population Research Presents A Sobering Prognosis in House prices and the economy Posted July 30, 2010 nothing about economics is scientific. Both economics and demographics are branches of sociology. That does not alter the fact the trend is downwards and has been for a long time now. a 65 year old worked is subject to more medical shocks to his earning capability than a 30 year old worker. Consequently the 65 year old worker will save more and spend less. how does that help? doing this will reduce output and that would create either negative return on capital and/or a depression. Mortality improvements have gone upwards (google the cohort effect) in the developed world. You are right older working people will have greater health risks, but inspite of this will be net producers. The saving comparison you are making is what young adults need to do for their children vs what older people do for their health care. As savings will fall for child care as a proportion of the population, this might be partially offset by saving for health care of older workers. With a significantly higher proportion of the population working in future output can be maintained for the same labour spread over more people and less days a week.