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Ageing Populations, Pension Systems and Government Budgets: How Do They Affect Saving?

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Author Info
Willi Leibfritz
Deborah Roseveare
Douglas Fore
Eckhard Wurzel

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Abstract

The paper examines the effects of demographic changes on government budgets and national savings. Most OECD countries will experience a rapid ageing of the population in the future and this development will put public pensions, health care systems and government budgets in general under increasing pressure. It could also have adverse effects on national saving. In order to provide some idea of the scale and magnitude of potential future problems the paper presents a quantitative analysis of the effects of ageing populations on government budgets, on inter-generational equity and on national saving and it also discusses policy options to cope with these problems. The paper finds that getting general government fiscal positions into better shape over the next few years would enable governments to better cope with the demographic change that will occur in the first decades of the next century. Furthermore, it stresses that further increases in retirement ages could make a major ...


Ce document examine l’incidence de l’évolution démographique sur les budgets publics et l’épargne nationale. Dans un future proche, la plupart des pays de l’OCDE vont être confrontés à un vieillissement rapide de leur population et cette évolution se traduira par des pressions accrues sur les systèmes publics de pension et de santé et plus largement sur les budgets publics. Elle pourrait aussi avoir des effets négatifs sur l’épargne nationale. Afin de donner une idée de l’échelle et de l’importance des problèmes potentiels à venir, cette étude présente une analyse quantitative des effets du vieillissement des populations sur les budgets publics, sur l’équité entre générations et sur l’épargne nationale. Elle analyse aussi les différentes options de politique économique qui pourraient permettre de faire face à ces problèmes. Il en ressort qu’améliorer les positions budgétaires au cours des prochaines années permettraient aux gouvernements de mieux faire face aux changements ...

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Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 156.

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Date of creation: 1995
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Handle: RePEc:oec:ecoaaa:156-en

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  1. Teresa Leal & Javier J. Pérez & Mika Tujula & Jean-Pierre Vidal, 2007. "Fiscal forecasting - lessons from the literature and challenges," Working Paper Series 843, European Central Bank. [Downloadable!]
    Other versions:
  2. Axel Börsch-Supan & Alexander Ludwig & Joachim Winter, 2002. "Aging and International Capital Flows," MEA discussion paper series 02010, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
    Other versions:
  3. Kinnunen, Helvi & Kuoppamäki, Pasi, 1998. "Sustainability of Public Finances in Finland and the Four Largest Euro-area Economies," Research Discussion Papers 25/1998, Bank of Finland. [Downloadable!]
  4. Baumgartner, Josef & Hofer, Helmut & Kaniovski, Serguei & Schuh, Ulrich & Url, Thomas, 2004. "Employment and Growth in an Aging Society. A Simulation Study for Austria," Economics Series 163, Institute for Advanced Studies. [Downloadable!]
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  5. Robert Fenge & Martin Werding, 2003. "Ageing and Fiscal Imbalances Across Generations: Concepts of Measurement," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  6. Didier Blanchet & Florence Legros, 2002. "France: The Difficult Path to Consensual Reforms," NBER Chapters, in: Social Security Pension Reform in Europe, pages 109-136 National Bureau of Economic Research, Inc. [Downloadable!]
  7. DOCQUIER, FrŽdŽric & PADDISON, Oliver & ,, 2000. "Growth and equality effects of pension plans," CORE Discussion Papers 2000036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
  8. Paul Atkinson, 2001. "The fiscal impact of population change: discussion," Conference Series ; [Proceedings], Federal Reserve Bank of Boston. [Downloadable!]
  9. Hofer, Helmut & Url, Thomas, 2005. "Growth Effects of Age-related Productivity Differentials in an Ageing Society. A Simulation Study for Austria," Economics Series 179, Institute for Advanced Studies. [Downloadable!]
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