Which of the following is an implication of a declining fertility rate in a country?

A declining fertility rate in a country typically signals that fewer children are being born over time. This demographic shift has significant implications, particularly for social and economic structures. One major consequence is increased pressure on pension systems.

As fertility rates decline, the proportion of older individuals in the population tends to rise relative to younger individuals. This creates a situation where there are fewer workers available to support a growing number of retirees. Pension systems, which rely on contributions from the current workforce to provide benefits to retirees, can become strained under these circumstances. Consequently, with fewer people in the workforce, there will be insufficient funding to support the pension obligations for the aging population, leading to potential financial instability in these systems.

In contrast, a growing young workforce or a more youthful population would typically be associated with higher fertility rates, where more children are born and enter the labor market. Similarly, higher overall population growth would also accompany rising fertility rates. Thus, the correct answer reflects the economic challenges that arise from a declining fertility rate, particularly regarding the sustainability of pension systems in an aging society.