Iceland Faces Rising Ageing Population, Nordic Report Finds

2026-03-28 - 10:03

The proportion of older people in the Nordics has reached its highest level to date, according to a new report highlighting demographic change. Research published by Nordregio in its State of the Nordic Region study indicates that all municipalities in the region are expected to have elderly populations by 2045. What's the Story? Report by Nordregio states ageing population increasing across Nordic region; all municipalities expected to have elderly residents by 2045 Fertility rates below replacement level; Iceland at 1.56 children per woman, Finland at 1.25 Rising dependency ratio with fewer working-age people supporting more elderly residents Credit: Nordregio Demographic shift continues The findings of the recent report point to increasing pressure on welfare systems as populations age and birth rates decline. “We have never been as old in the Nordic countries as we are now – and we are aging rapidly. At the same time, there is much to learn from the regions and municipalities that have been grappling with these challenges for a longer time,” said Thomas Niedomysl. Fertility rates across the Nordic countries are below the replacement level of 2.1 children per woman. In Iceland, the rate stands at 1.56, while Finland records the lowest at 1.25. “Declining fertility is a trend that has been noticeable since 2010, and the truth is that research has not revealed exactly why,” Niedomysl said. As life expectancy rises and fewer children are born, the dependency ratio is shifting, with fewer working-age people supporting a growing number of older residents.