Taxation in Aging Societies: Increasing the Effectiveness and Fairness of Pension Systems

Abstract

Population aging is accelerating worldwide and has significant socio-economic implications, including a decline in the size of the labor force, an increase in the age-dependency ratio, and a redistribution of income and wealth. Hence, the redesign of pension systems has become a priority. Taxation is crucial to influence behavior and tackle these issues, e.g., tax incentives for pension savings. Yet, whereas some progress has been made, much remains to be done to increase the effectiveness and fairness of pension systems. Thus, we urge the Group of 20 governments to take a systemic view of pension systems including socio-economic aspects such as education, migration, labor force participatio..