Social Security Reform

The basic nature of the pensions crisis facing a range of economies was identified in Section 22.3 increasing longevity and the decline in the birth rate are combining to increase the dependency ratio. Without major reform or an un-acceptably high increase in tax rates, the pension programs will either go into deficit or pay a much reduced pension. A variety of reforms have been proposed in response to this crisis. Some of these are now briefly reviewed. Underlying the crisis is the fact that...