This paper is concerned with the possible economic effects of the demographic movements expected to emerge in the OECD area over the next 30 years. It is argued that the labour and product market implications of the changing population size and ageing are not as worrying as conventional wisdom believes, especially if counterbalancing economic policies are implemented. The most negative effect will probably concern a potential productivity slowdown, but ageing might also have some positive side-effects; implying, for example, declining youth unemployment.