In its Pensions at a Glance 2017 report, the OECD stressed the need for ongoing reforms in the pension systems of its member countries. According to the agency, major reforms are required in all OECD member countries for mitigating the impact of population aging, growing inequality among the elderly and the changing nature of the labor market.

The report points out that overall public expenditure on pensions in the OECD has increased by approximately 1.5% of GDP since 2000. Nonetheless, the pace of growth is expected to decrease substantially due to the reforms already implemented. Only in the last two years, one-third of the OECD member countries increased contribution rates, another third changed the formulas for calculating benefits, and 3 countries increased the official retirement age.  The reforms will reduce the incomes of future pensioners, and due to greater longevity, the retirement age will have to be postponed to ensure a decent pension.

For further details, see the OECD Press Release.