Ageing, pension systems, fiscal sustainability and groth - BEL-Ageing



All advanced economies are experiencing poulation ageing - characterized by a low fertility rate and a steady increase in life expectancy - and its consequences in terms of public finances and potential growth. Some countries are more affected than others. Belgium is one of them. According to the projections of the European commission's Ageing Report (2012), public pension spending will increase from 11% to 16% of GDP between 2010 and 2060, the fourth strongest projected rise after Luxembourg, Cyprus and Slovenia. As its public debt and tax-revenue-to-GDP ratio are already very high, Belgium has no much fiscal leeway to absorb the expected increase in public pension spending without jeopardizing its fiscal sustainability, economic groth and welfare. Therefore, like many other advanced countries, Belgium will have to introduce pension reform