The Aging Mega Problem Facing All OECD Countries


 
Fertility rates have been falling across the OECD for many decades. As a result, every member of the OECD is projected to see its working-age population decline between 2030 and 2050. Simultaneously, retirees are living longer and forming an ever-larger portion of OECD populations. These factors are causing a decline in the number of working-age people available to support the expanding number of retirees across the OECD.

Number of Working-Age People (15-64) to each Dependent (65+) across the OECD
The working-age population represents those aged 15 to 64. Period: 1950-2050.
The Aging Mega Problem Facing All OECD Countries




In 1950, there was an average of 9 people of working age supporting each retiree across the OECD. By 2050, it will be closer to 2. This ratio assumes full employment and no sickness among the 15-64 cohort, which is unlikely. Without immigration or higher retirement ages across the OECD, the real ratio of actual working people to retirees will be significantly worse than what is shown in the chart.

The tax funded cost of retirees is much higher (at least twice that of the working population) due to pension, medical, and old-age-care liabilities which are often funded by the Government. Overall, an unprecedented and increasingly unsustainable tax burden is emerging across the OECD.

More for subscribers:  
See more...The Alarming Cost of Aging Demographics
See more...More data for the OECD...
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