Tackling the Challenge of Aging Populations: The Impact of Increasing Life Expectancy and Low Fertility on the Old-Age Dependency Ratio

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2023-09

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Abstract

The old-age dependency ratios are indicators of the number of elderly people who are generally economically inactive compared to the number of people of working age. They significantly affect the financial burden of social public pension schemes, making it essential to analyze the influence of mortality on this ratio. In this paper, the Gompertz model is used to investigate the effect of mortality and fertility on the old-age dependency ratio, with a focus on the impact of changes in life expectancy. Elasticity formulas are derived to analyze this effect, and the results indicate that an increase in life expectancy leads to a considerable rise in the old-age dependency ratio.

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actuarial models, life table, social security, Gompertz distribution, demographic changes

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