Dependency Ratio
A measure showing the number of dependents (aged 0-14 and over the age of 65) to the total population (aged 15-64). Also referred to as the "total dependency ratio".
Calculated by:
Investopedia Commentary
This indicator gives insight into the amount of people of non-working age compared to the number of those of working age. A high ratio means those of working age - and the overall economy - face a greater burden in supporting the aging population.
The young dependency ratio includes only under 15s, and the elderly dependency ratio focuses on those over 64. For example, if in a population of 1,000 there are 250 people under the age of 15 and 500 people between the ages of 15-64. The youth dependency ratio would be 50% (250/500).
Related Links
Taking The Surprise Out Of Long-Term Care
Analyzing Pension Risk
See also: Dependent, Life Expectancy, Medicare, Pension Plan, Pension Shortfall