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Fiscal Implications of Ageing: Projections of Age-Related Spending

Listed author(s):
  • Thai-Thanh Dang
  • Pablo Antolín
  • Howard Oxley

This paper provides new projections on the fiscal impact of age-related spending for OECD countries over the next half century. These results are based on national models using an agreed upon set of assumptions about macroeconomic and demographic developments for all countries. Recent reforms to pension systems have partly offset the impact on spending of an increasingly elderly population, and there has been a major improvement in the underlying fiscal situation in the 1990s. However, further age-related spending (including old age pensions, health and spending associated with children) is still projected to increase on average around 6 to 7 per cent of GDP over the projection period. This calls for maintaining the reform effort and intensifying it in several countries, if fiscal sustainability is to be maintained ... Cette étude contient de nouvelles projections sur l’impact budgétaire des dépenses liées à l’âge dans les pays de l’OCDE pour les cinquante prochaines années. Ces résultats reposent sur des modèles nationaux utilisant un cadre macroéconomique et démographique normalisé pour tous les pays. Les réformes récentes des régimes de retraite ont compensé en partie l’incidence du vieillissement de la population sur les dépenses et les situations budgétaires sous-jacentes se sont nettement améliorées dans les années 90. Toutefois, les dépenses liées à l’âge (c’est-à-dire aux pensions de vieillesse, à la santé et aux enfants) devraient augmenter en moyenne de 6 à 7 pour cent du PIB au cours de la période de projection. Il est donc nécessaire de maintenir les efforts de réforme et de les intensifier dans plusieurs pays si l’on veut préserver la viabilité budgétaire ...

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Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 305.

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Date of creation: 19 Sep 2001
Handle: RePEc:oec:ecoaaa:305-en
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