ABSTRACT
This chapter presents the policy responses of different countries to the prospect of ageing populations: in particular, to the question of providing pensions to a larger group of older people in the population. It reviews the demographic outlook in seven main OECD countries: Japan, France, Germany, Norway, the United States, Austria and Italy. The chapter discusses the effect on contribution rates of increasing male retirement age, increasing female employment and a 10 per cent reduction in benefit rates and examines the consequences of moving to funded pension schemes. It also discusses the broad objectives of pension schemes - as seen by the International Labor Organization- and comments on the risks associated with funded schemes and the benefits of mixed systems. Labour market policies which increase the retirement age of men and increase the participation rate of women are broadly sufficient to cope with the effects of ageing populations.
