Policy Challenges of Population Aging in Ireland

October 1, 2007

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Format: Chicago

Dora M Iakova, and Dennis P Botman. Policy Challenges of Population Aging in Ireland, (USA: International Monetary Fund, 2007) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The projected rise in age-related government spending as a share of GDP in Ireland over the next forty years is among the highest in the euro area. In the absence of reforms, public debt will increase to unsustainable levels. This paper uses the IMF's Global Fiscal Model to compare the macroeconomic effects of different fiscal strategies to accommodate the rise in age-related spending. The simulations suggest that adopting a package of measures, including an increase in the retirement age, broadening the tax base, and raising indirect taxes, would be a more growth-friendly strategy than relying exclusively on raising the social security contribution rate.

Subject: Aging, Expenditure, Pension spending, Pensions, Social security contributions

Keywords: Debt, GDP, Rate, Social security contribution rate, Spending, WP

Publication Details

Pages:

15
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/247
Stock No:

WPIEA2007247
ISBN:

9781451868104
ISSN:

1018-5941

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