Population Ageing — A Problem Not a Crisis

  • Nicholas Barr
Chapter

Abstract

Over 20 years ago, in a paper called “Myths My Grandpa Taught Me” (Barr, 1979), I attacked the conventional view that funded schemes are less vulnerable to demographic pressures than PAYG schemes. Since then a major debate has erupted about the desirability of a move towards private, funded pensions. This paper starts by setting out the simple economics of pensions (which are much simpler than they are frequently portrayed); drawing on those analytics, the second section seeks to answer two questions: does a move to funding address the problems of population ageing; and would such a move help to contain public spending? As will become clear, I am doubtful about both claims

Keywords

Funded Pension Public Spending Pension Scheme Funded Scheme Private Pension 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2003

Authors and Affiliations

  • Nicholas Barr

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