The Dependency Rate as a Percentage of After-tax Income: Canada 2008

We examine whether or not the dependency rate increases or decreases as family income increases (or decreases). In particular, some experts have argued that the survivor’s dependency decreases as the deceased’s income increases. For example, whereas the widow of a man with low income might need, say, 80 percent of his income in order to be left in the same financial state as if he had lived, the widow of a wealthy man might need only 50 percent.

In this article, we will show that the dependency rate does not differ significantly from the lowest to the highest quintiles.