The Aging Problem Facing All OECD Countries


 
Fertility rates have been falling across developed countries for many years and this is now resulting in shrinking workforces. Every single member of the OECD is projected to see its working-age population decline between  2030 to 2050. Every member is also estimated to experience a continued rise in old age dependency . This is because those in the 65+ age cohort are living increasingly longer, and retirees are forming a larger portion of the total population. The result of these trends is a diminishing number of tax-paying workers to support the increasing cohort of retirees across the OECD.

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




In 1950, on average across the OECD,  9 workers supported each retiree.  By 2050 it will be closer to 2.  This demographic trend becomes more dire when not just looking at the number of retirees but factoring in their higher cost to Governments.  Estimates suggest that on average across OECD countries  the over 65's cost between 3 and 5 times more per capita in pension , medical amd long term care costs  than the shrinking working age tax base .

What is fast emerging is an increasingly unsustainable generational tax burden, with no obvious solution except the extremely unpopular political choices of later retirement and more inward migration.

More for subscribers:  
See more...See more data for the OECD...
See more...See more 'Number of Workers to Each Elderly Dependent' data...



More perspectives using World Economics data

Sales Managers March Index Reflects Continuing Global Growth
Sales Managers March Index Reflects Continuing Global Growth
World economic activity continues to grow when seen through the lens of the Sales Managers Indexes, in the world's largest economies (China, the USA and India). In particular, the Global Business Confidence Index has recovered from the declining trend seen over the March - September 2024 period. Since October, this Index has reflected a higher level of confidence, which usually translates into increas...
The $38-Trillion-per-year Cost of Climate Change
The $38-Trillion-per-year Cost of Climate Change
The Potsdam Institute for climate impact research (backed by the German Government) estimates the increasing damage from rising temperatures and changes in rainfall is likely to reach $38 trillion per year by 2050. This cost burden is already being felt, as illustrated by rising insurance premiums . Whilst the overall burden is very high, some countries are far more vulnerable to this damage than o...
First March Survey Results for the Indian Economy
First March Survey Results for the Indian Economy
Indian Sales Managers reported yet another month of rapid economic expansion in March. The month saw all Indexes well over the 50 "no change" level, reflecting expansion across a wide variety of business sectors, that will doubtless be envied in many other countries. The Indian Sales Managers Indexes are currently reflecting what economists sometimes refer to as a "Goldilocks" scenario, with economi...