The Irish Fiscal Advisory Council has said in a new report that Ireland’s rapidly ageing population is the foremost challenge facing the State, even ahead of the green energy transition.

However, it offered suggestions only on managing the financial fallout, rather than increasing the fertility rate. Ireland’s rate is now 1.5, well below the replacement level of 2.1.

The report, published last week, says the population aged 66 and over is set to almost double over the next 30 years. By contrast, the working age population will remain broadly stable. As a result, the number of workers for every pensioner is likely to fall from 3.5 to 3 by 2030 and to fall towards 2 by 2050.

“This transformation of the population is rapid by international standards,” the report warns, adding that it will put pressure on the state to provide more healthcare, long-term care and pension payments.

The report cautions that an older population will also mean slower growth in the economy, and hence in tax revenues. Under existing policies, it says this will push up Ireland’s debt ratio.

The report urges for “action sooner rather than later” because this will ultimately be less costly.