Dependency Ratio

AAA

DEFINITION of '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:

Dependency Ratio

INVESTOPEDIA EXPLAINS 'Dependency Ratio'

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 TERMS
  1. Life Expectancy

    1. The age until which a person is expected to live. 2. The remaining ...
  2. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  3. Pension Shortfall

    A situation in which a company offering employees a defined benefit ...
  4. Pension Plan

    A type of retirement plan, usually tax exempt, wherein an employer ...
  5. Dependent

    An individual whom a taxpayer can claim for credits and/or exemptions. ...
  6. Tianjin, China

    A definition of Tianjin, China.
Related Articles
  1. Retirement

    The Investing Risk Of Underfunded Pension ...

  2. Home & Auto

    Taking The Surprise Out Of Long-Term ...

  3. Economics

    What's the lowest year-over-year inflation ...

  4. What is GNP?
    Economics

    What's the GNP?

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center