Population in Milan province by group age 2010-2024

The population residing in the metropolitan city of Milan has progressively aged from 2010 to 2024. In fact, the share of young citizens between zero and 14 years old, who constitute less than one fifth of the total, decreased by more than one percent. Similarly, the adults between 15 and 64 years old recorded a contraction by 0.3 percent. On the contrary, the inhabitants aged 65 years old or more augmented their share by 1.6 percent.

The eldest European country

The pattern displayed in the figure matches the age distribution of the Italian population. Over the last twenty years, only the share of citizens aged 65 and older expanded, growing by 5.4 percent, while for children between zero and 14 years old and adults from 15 to 64 years, a reduction was registered by respectively 1.7 percent and 3.7 percent. The data clearly highlights the acute demographic decline that the country is experiencing. Italy is the second-oldest country globally and the first in Europe, with almost 24 percent of the population aged more than 65 years. Without effective and targeted policies to encourage natality and to support young families, it will be decisively problematic to revert this trend, which can have a critical impact on public finances too. 

Unsustainable pension system

The aging population, combined with a shrinkage of young individuals, seriously endangers the sustainability of the public pension system as well as the state’s capacity to provide adequate social security to its citizens. More and more workers are retiring, and hence the country is forced to reserve an increasing share of its budget for welfare policies. Without a proportionate labor turnover from older to newer generations which can adequately support the pension scheme, policymakers must resort to public debt, to cover the missing share of contributions. The indebtedness in 2020 amounted to 1.5 times the Gross Domestic Product (GDP). As this trend is predicted to increase, the Italian government is urged to find a solution that must conciliate the protection of 16 million pensioners with an always growing lack of pension contributions paid by the young workforce.