Old-age dependency ratio

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[edit] Introduction

The old-age dependency ratio is the ratio of older people to younger people in a population. It generally compares the number of people of pensionable age (currently 65 and above) with those of working age (currently 20 to 64).

[edit] Facts

The dividing age of 65 reflects the statutory pension age, even if the de facto retirement age is younger.

In 2008, there were 34 people aged 65 or older for every hundred people of working age (between 20 and 64). The old-age dependency ratio will increase sharply over the next few years with the imminent retirement of those born during the bulge years. Forecasts by the Federal Statistical Office predict an old-age dependency ratio of 50 or 52 by 2030 and 60 or 64 by 2050.

There will be no change over the medium term to the upward trend in the ratio of older people to people of working age. Even given comparatively favorable population trends with regard to ageing and even if the cut-off point for the old-age dependency ratio were increased to the future retirement age of 67, the old-age dependency ratio would still be 51 by 2050, significantly higher than the current value.

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