Population Aging and the Rising Cost of Public Pensions

The average age of the global population is increasing as birth rates continue to fall and life expectancy continues to increase. The problems associated with large elderly populations are especially acute in the OECD nations- North America, Western Europe, Japan, and Australia/New Zealand. This report details the fiscal implications of aging populations in OECD nations. For the next several decades, pension expenditures are projected to grow much more rapidly than tax revenue, leading to widening budget gaps that are unsustainable in the long-run. The report analyzes population projections and pension projections for specific nations, revealing a wide range of budgetary problems among OECD nations.