What is a consequence of an increasing dependency ratio in society?

The increasing dependency ratio in society reflects a larger proportion of dependents—typically the young and elderly—compared to the working-age population. This situation creates a significant challenge, as the working-age individuals bear the financial responsibility for supporting the dependents. When the dependency ratio rises, it means that fewer workers are available to provide the resources, such as income and services, required to support those who are not in the labor force. Consequently, the working-age population faces increased strain, as they may need to work harder, contribute more in taxes, or allocate a larger share of their income to support dependents. This dynamic can lead to socioeconomic pressures, including potential declines in economic growth and increased challenges in funding social services and pensions.