While socioeconomic conditions have an impact on demographics, the demographic transition also has a significant effect on social and economic development. On the one hand, the ‘demographic dividend’ that occurs at a specific stage can be a tremendous stimulus to economic growth. On the other hand, the demographic transition leads to low population growth, a falling birth rate, and population aging. This impacts the size of the labor force. It impedes any rise in labor productivity. It is not conducive to economic growth and it brings with it a host of other problems. This chapter therefore discusses the socioeconomic impacts of demographic transition. It focuses on the relationship between stages in individual life cycles and socioeconomic policies, on the economic growth brought about by the demographic dividend, on the challenges posed by demographic transition, and on policy orientation given such challenges.