Population Aging and Long-Term Fiscal Sustainability in Austria
IMF Working Papers, December 1, 2002
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- Population Aging and Long-Term Fiscal Sustainability in Austria
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Bibliographic details
- Authors: Leif Lybecker Eskesen
- Published: December 1, 2002
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451875096.001
Summary
- Austria faces significant population aging, which will increase public spending on pensions, health care, and long-term care, while tax and social security revenues will fall.
- The paper analyzes the fiscal burden facing Austria due to aging and the policy steps necessary to address it.
- The paper finds that Austria is not well prepared to meet the fiscal burden of aging and that fiscal sustainability is threatened, even under fairly optimistic assumptions about the effects of recent pension and labor market reforms.
- To ensure long-term sustainability, pension reform must go further and other saving measures might also be necessary.
Major Findings
- Population aging will increase public spending on:
- Pensions
- Health care
- Long-term care
- Revenues likely to decline:
- Tax revenues
- Social security revenues
- Fiscal sustainability is threatened despite fairly optimistic assumptions about recent pension and labor market reforms.
- Current measures are insufficient; further pension reform and additional saving measures may be required.
Policy Implications and Recommendations
- Implement deeper pension reform beyond recent changes.
- Consider additional saving measures across the budget to address increasing spending pressures from aging.
- Address interactions between pension policy, labor market outcomes, and health/long-term care spending to secure long-term public finance sustainability.
Subjects and Keywords
- Subjects: Aging, Expenditure, Health care spending, Labor, Pension spending, Pensions, Population and demographics, Retirement
- Keywords: Aging, benefit effect, budget constraint, debt ratio, debt ratio target, early retirement, Fiscal Policy, Health Care, Health care spending, Pension spending, Pensions, Population Aging, present discounted value, Public Finance Sustainability, Retirement, retirement age, spending pressure, welfare system, WP
Summary based on the IMF Working Paper "Population Aging and Long-Term Fiscal Sustainability in Austria" by Leif Lybecker Eskesen (Working Paper No. 2002/216).
Content in this bundle
- Population Aging and Long-Term Fiscal Sustainability in Austria - WP/02/216