Argentina's Unsustainable Retiree Burden on its Shrinking Workforce


 
Argentina’s fertility rate has been declining and is currently sub-replacement. Consequently, the working-age population will start to shrink at the end of this decade. Simultaneously, retirees are living longer and forming an ever-larger part of the population. These factors are causing an extraordinary decline in the number of working-age people available to support the expanding number of retirees.

Number of Working-Age People to each Dependent (65+) in Argentina
The working-age population represents those aged 15 to 64. Period: 1950-2050.
Argentina



Note: Y axis ratios are expressed as “X : 1,” meaning X working people to every 1 elderly dependent.

In 1950, each Argentinian retiree was supported by almost 16 people of working age. By 2050, this is projected to have fallen closer to 3. Once enjoying almost double the worker-to-retiree ratio of the OECD average, Argentina is approaching the same dire ratio by 2050. Adding to this already nightmarish equation is the fact that Argentina has a 62% labour force participation rate. Therefore, these figures overstate the number of workers available to support retirees today. Due to this demographic shift, Argentina may become old before it can achieve the high GDP-per-capita levels that match the developed West.

More for subscribers:  
See more...The Alarming Cost of Aging Demographics
See more...See more data for Argentina...
See more...See more Fertility Rate data...
See more...See more 'Number of Workers to Each Elderly Dependent' data...



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