Abstract for: Dynamic Aging Population in Germany: A case study about demographic change

Recent trends in demographic changes in Germany mainly because of rapid population ageing represented as increasing ratio of older population over total population, have become a major problem for the German government. They are worry if recent trends continues it would cause massive disturbance in Germany socio-economic system, starting from vast amount of pension fund government have to pay to immerse fall of countries GDP. Therefore, by using System Dynamics approach this paper offers systemic point of view on how population structure changed in Germany; it explain why fertility rate in Germany stays low and how economic indicators would trigger changes in population structure. Moreover, it also illustrates feedback effect from population age structure to economic indicators. The result shows that current trends will continue and will not dampen if there is no adequate policy intervention from government. Hence, this paper offers set of policy measures to stabilize increasing ratio of older population. By opening more immigration opportunity for productive age workers, increasing child incentives, increasing pension age, and promoting gender equality as a set of policy measures might exhibit a better result to stabilize the population age structure. This policy measures effect shows desirable result toward expected behavior.