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Ageing and the sustainability of Dutch public finances

  • Casper van Ewijk


  • Nick Draper


  • Harry ter Rele


  • Ed Westerhout


The ageing of the population jeopardises the sustainability of public finances in the Netherlands. The doubling of the ratio between the number of retirees and the number of workers destroys the balance between future public expenditure and tax revenues. Read also the accompanying press release .Indeed, the increase in expenditure on public pensions and health and long-term care will outweigh the increase in tax revenues. Budgetary reforms are therefore necessary in order to avoid that future generations will have to raise taxes or economize on public expenditure. Reforms in the field of social security of the last few years are a step in the right direction, but are insufficient. In particular, the decline of interest rates and the reduced wealth of pension funds have worsened the sustainability of public finances. The effects of reforms on the intergenerational balance are important for the question which further reforms are most attractive.

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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Special Publication with number 61.

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Date of creation: Mar 2006
Date of revision:
Handle: RePEc:cpb:spcial:61
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  1. Ed Westerhout & Frank Pellikaan, 2005. "Can we afford to live longer in better health?," CPB Document 85, CPB Netherlands Bureau for Economic Policy Analysis.
  2. W. M. T. Westerhout, 2006. "Does Ageing Call for a Reform of the Health Care Sector?," CESifo Economic Studies, CESifo, vol. 52(1), pages 1-31, March.
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