Chile's Unsustainable Retiree Burden on its Shrinking Workforce


 
With the lowest current fertility rate across the Americas (1.1%), Chile’s working-age population is shrinking. 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 Chile
The working-age population represents those aged 15 to 64. Period: 1950-2050.
Chile



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

In 1950, each Chilean retiree was supported by 17.5 people of working age. By 2050, this is projected to be closer to 2. Once enjoying a far higher worker-to-retiree ratio than the OECD average, Chile is projected to have broadly the same dire ratio by 2050. Adding to this already nightmarish equation is the fact that Chile has a 61.5% labour participation rate. Therefore, these figures overstate the number of workers available to support retirees today. The particular issue for Chile is that, with this demographic shift, it may become old before it can become rich. Chile will struggle to achieve the high GDP-per-capita levels that match the developed West due to this dire worker-to-retiree ratio, stymying any ambitions for developed nation status.

More for subscribers:  
See more...The Alarming Cost of Aging Demographics
See more...The Aging Problem Facing All OECD Countries
See more...See more data for Chile...
See more...See more Fertility Rate data...
See more...See more 'Number of Workers to Each Elderly Dependent' data...



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