The paper deals with the economic aspects of population ageing. The paper challenges the commonly perceived idea that population ageing is major threat for the economy of pension and health care systems. Population ageing is viewed as natural and periodical process that cannot threaten the basic functions of the welfare state. The cause of present problems is identified as the inability of the policy makers to fine-tune social systems as an answer to changing demography. The arguments are based on the oscillation of age structure and the importance of the employment and growth rates.