The Impact of Baby-Boomers' Retirement on Dependency Ratio in 2030
What is the predicted old-age dependency ratio for baby-boomers in 2030?
a) 2 to 1
b) 35 to 100
c) Not provided
d) Not provided
Answer:
The statement predicting a 2 to 1 dependency ratio for baby-boomers in 2030 is false; the actual projected old-age dependency ratio is 35 to 100.
According to the U.S. Census Bureau's report, the predicted old-age dependency ratio for baby-boomers in 2030 is 35 to 100, not 2 to 1 as stated. This ratio signifies the number of people aged 65 and older to every 100 people of traditional working ages.
The increase in the dependency ratio will have a significant impact on the Social Security program and the overall standard of living in the United States. It will put a greater burden on the working-age population to support the aging demographic, leading to challenges in providing adequate support and benefits to retirees.
It is crucial for policymakers to address the implications of this changing demographic landscape and develop sustainable solutions to ensure the well-being of both current and future retirees.