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Jeff Desjardins
2024-08-06 14:37:41
www.visualcapitalist.com
See this visualization first on the Voronoi app.
Old-Age Dependency Ratios of the Top 10 Economies
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The old-age dependency ratio measures the number of people over the retirement age of 65 for every 100 working-age people. The lower the ratio, the more people there are supporting retirees, which translates to less fiscal strain on government systems.
In charts by creator Preyash Shad, we look at old-age dependency ratios of the top 10 economies based on data from the Organisation for Economic Co-operation and Development (OECD).
Japan in Trouble
Japan has had a rapidly rising old-age dependency ratio for several decades and has the highest ratio currently at 54.5.
| Country | 2023 | 2050F |
|---|---|---|
 Japan |
54.5 | 80.7 |
 Italy |
40.9 | 74.4 |
 Germany |
41.4 | 58.1 |
 France |
38.4 | 54.5 |
 China |
20.0 | 47.5 |
 United Kingdom |
34.2 | 47.1 |
 Canada |
33.4 | 44.9 |
 United States |
31.3 | 40.4 |
 Brazil |
17.1 | 39.5 |
 India |
11.6 | 22.5 |
Source: OECD
Meanwhile, Germany is the runner-up in the top 10 economies with a distant second-place dependency ratio of 41.4.
At the same time, the United States maintains a relatively low old-age dependency, with a ratio of 31.3, which places it seventh among the top 10 economies.
India, now the world’s most populous country, has the lowest ratio of 11.6, in large part because it also has the youngest population.
Projections for 2050
By 2050, Japan will maintain the highest old-age dependency ratio of the group, moving from 54.5 to a staggering 80.7. In an effort to head-off such a high ratio, Japan is has put policies in pace to attract young immigrants and migrant workers and is making some progress.
Italy, which is facing similar demographic pressures, will move from distant third to a close second, moving from a ratio of 40.9 to 74.4.
China, because of the results of the one-child policy and low immigration, could surpass the U.S. by 2050 with a ratio of 47.5.
The post Ranked: Old-Age Dependency of the Top 10 Economies appeared first on Visual Capitalist.
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