Studying the trend of some the population aging indexes of the country during the last decades shows that the
average and median age of the country population are increasing. This fact will deeply affect the economic and
social characteristics of the society and also the sources distribution pattern. One specific point about the
mentioned fact is the increasing political penetration role of the aged population in the fiscal policy formation
which in turn can affect the physical and human capital formation. This study uses the overlapping generations
model and numerical simulation method to explain the effects of the population aging on the fiscal policy
formation in Iran and also simulates the effects of the population aging on the capital formation course from a
beginning position, 2005, to a steady state position, 2035, and thus this study is the first one in this field. The
computations results show the political penetration role of the aged population in the fiscal policy formation
decreases the human capital growth and consequently can slow down the economic growth.