The age dependency ratio
for those of working age, whether they have a job or not, stands at 2.7 individuals per person of working age.
Lucintel describes that the pressure on Singapore economy is its increasing dependency ratio
. A high dependency ratio
puts a strain on government spending in healthcare and pension schemes.
According to Statistics Sweden's population forecast, we now face a long period of growth in the demographic dependency ratio
to 0.85 in 20 years and 0.92 in 45 years (see Diagram 50).
To see why, consider the tax rate necessary to pay for social benefits, which equals the replacement rate (the average level of benefits relative to taxpayer incomes) multiplied by the dependency ratio
(the share of the population receiving the benefits).
The well known economic old dependency ratio
(ODR) is used as one indicator of the evolution of the worker and retiree population.
- The old-age dependency ratio
reached 26.8% in 2012 and it is projected to increase sharply up to 52.6% by 2060
The dependency ratio
is over 70 per 100, and those aged 60 and above number about 7m.
Saudi Arabia's old age dependency ratio
(the number of over 65s relative to the population aged 15-64) will more than quadruple by 2050, the report forecasted.
From this perspective, the old age dependency ratio
would increase from 21% now to 6.3% in 2060 (Buti, Deroose et.
This puts severe pressure on dependency ratios
: By 2050 it is estimated that the elderly dependency ratio
will be almost 75%, meaning there will be almost three retirees for every four people of working age.
Needless to say that the demographic structure increases the dependency ratio
of the elderly on the young.
To reduce the dependency ratio
, there has to be less reluctance to widen immigration despite longstanding misgivings of a dilution of ethnic homogeneity.