Pensioners Starting To Feel Fiscal Austerity Impact, OECD Warns

Pensioners in developed economies are no longer being spared the worst effects of the financial crisis as fiscal austerity programmes aimed at curtailing spending on the elderly start to kick in, the OECD has warned, the Financial Times reported. Spending on pensions, which accounts for nearly a fifth of government outlays on average across the 34-nation Organisation for Economic Co-operation and Development, is being limited through a variety of benefit changes including raising state retirement ages and freezing – or even cutting – payouts. The OECD’s Pensions at a Glance 2013 said that even with these measures, spending on retirement systems is likely to increase simply because the percentage of population living until very old age is rising. As a result, member states are struggling to balance sustainability – offering pensions that taxpayers can afford – against the risk of significant numbers of elderly falling into poverty. Read more.