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If a country has a small elderly population and a large working-age population, how may immediate pension pressure be described?

Answer and explanation

Correct answer: Relatively low

Pension pressure depends partly on the relationship between people receiving pensions and people who can contribute through work and taxes. When the elderly share is small and the working-age share is large, there may be more potential contributors for each elderly person. This generally reduces immediate demographic pressure on pension systems, although actual pressure also depends on employment, wages, contribution rules, pension coverage, and government policy. Thus the conclusion is relative, not absolute.

Option A is correct because it says pressure is relatively low, not that it disappears. Option B is too strong: a large working-age group does not make pressure necessarily very high. Option C is also incorrect because pension pressure cannot be assumed to be zero; some elderly people still require support and financial conditions matter. Option D confuses two different population groups. The age structure suggests a favourable dependency relationship for pensions in the short term, while future ageing may change it.

Related tags

Pension PressureWorking Age PopulationElderly ShareDependencyAge StructurePopulation CompositionGeographyClass 12 Mcq

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