Impact Of China’s Aging Population On Residents’ Consumption

At the end of 2022,the number of elderly people aged 65 and above in China reaches 209.78 million,accounting for 14.9% of the total population.At the same time,China is facing an aging population trend characterised by rapid growth and advanced aging.This trend has resulted in the growth of residential consumption lagging behind GDP growth,with China’s residential consumption rate generally showing a downward trend since 1978.Cross-country studies have shown that the impact of aging on consumption varies from country to country,with some countries experiencing positive effects of aging on consumption,while others have negative effects.In order to explore the specific impact of ageing on residential consumption,this study investigates the impact of aging on residential consumption,with the aim of providing useful references for policy formulation in the context of China’s current aging population.Based on the literature on population aging and household consumption at home and abroad,this paper comprehensively analyzes the problem of population aging in China and the current situation of consumption level and structure of urban and rural residents,and explores the influence mechanism of population aging on household consumption.Then,based on the time series data from 1995 to 2021,the impact of population aging on residents’ consumption level was studied using the standard consumer model.At the same time,based on the urban and rural data from 2000 to2020,the gray correlation method is used to study the impact of population aging on the consumption structure of residents,and the research conclusions are as follows:First,with the increase of the proportion of the elderly,the consumption level of residents also declines,and the two are negatively correlated.Second,the aging of the urban population is strongly correlated with the consumption structure of residents,with transportation and communication ranking first,followed by residence,and health care consumption in third place.The correlation between the aging of the rural population and the consumption structure of residents is also strong,and the top three are different from those in cities and towns,namely health care,housing and daily necessities and services.Finally,this paper puts forward four suggestions: first,let the elderly receive continuing education and change the concept of consumption;Second,develop human resources for the elderly,appropriately extend the retirement age,and increase the income level of the elderly,so as to stimulate consumption and promote economic development;Third,vigorously develop the aging industry and promote the adjustment of the industrial structure;Fourth,reduce the gap between urban and rural areas,improve the social security system,increase government support for rural residents,and improve the overall consumption level of residents.