Will These Countries Be The Next To Raid Their Pensions?

Sweden

Photo: AP

Today, Ireland announced plans to tax pensions in a bid to raise revenues to fund a jobs program.While Ireland is a special case, faced with strict spending rules due to its EU-IMF bailout, the same sort of practice could emerge in other developed countries, where the amount of retired persons has grown compared to those in the workforce.

The latest OECD shows that countries across the West are facing demographic crises that could cripple revenue growth and make bad budget situations even worse.

While instances such as Japan are well known, the problem is endemic across Europe, with many countries seeing their dependency ratios, that is the amount of workers per retirees, shrink as we approach 2050.

We’ve ranked the OECD countries projected to have the worst dependency ratios by 2050.

Note: We’ve listed all the countries in the OECD that are worse than the average dependency ratio projected in 2050. Retirees are individuals 65 years an older. Working age people are those age 20 to 64. The 2050 ratios are projections, and could change due to an increase in the birth rate, immigration, or the retirement age.

#17 Iceland

Ratio of working age people to retirees in 2008: 5.1 to 1

Projected ratio in 2050: 2.0 to 1

Source: OECD

#16 Switzerland

Ratio of working age people to retirees in 2008: 3.7 to 1

Projected ratio in 2050: 2.0 to 1

Source: OECD

#15 Finland

Ratio of working age people to retirees in 2008: 3.7 to 1

Projected ratio in 2050: 2.0 to 1

Source: OECD

#14 Belgium

Ratio of working age people to retirees in 2008: 3.5 to 1

Projected ratio in 2050: 2.0 to 1

Source: OECD

#13 Slovak Republic

Ratio of working age people to retirees in 2008: 5.5 to 1

Projected ratio in 2050: 1.9 to 1

Source: OECD

#12 Czech Republic

Ratio of working age people to retirees in 2008: 4.4 to 1

Projected ratio in 2050: 1.9 to 1

Source: OECD

#11 France

Ratio of working age people to retirees in 2008: 3.5 to 1

Projected ratio in 2050: 1.9 to 1

Source: OECD

#10 Poland

Ratio of working age people to retirees in 2008: 4.8 to 1

Projected ratio in 2050: 1.8 to 1

Source: OECD

#9 Austria

Ratio of working age people to retirees in 2008: 3.6 to 1

Projected ratio in 2050: 1.8 to 1

Source: OECD

#8 Slovenia

Ratio of working age people to retirees in 2008: 4.0 to 1

Projected ratio in 2050: 1.7 to 1

Source: OECD

#7 Portugal

Ratio of working age people to retirees in 2008: 3.5 to 1

Projected ratio in 2050: 1.6 to 1

Source: OECD

#6 Greece

Ratio of working age people to retirees in 2008: 3.4 to 1

Projected ratio in 2050: 1.6 to 1

Source: OECD

#5 Germany

Ratio of working age people to retirees in 2008: 3.0 to 1

Projected ratio in 2050: 1.6 to 1

Source: OECD

#4 South Korea

Ratio of working age people to retirees in 2008: 6.3 to 1

Projected ratio in 2050: 1.5 to 1

Source: OECD

#3 Spain

Ratio of working age people to retirees in 2008: 3.7 to 1

Projected ratio in 2050: 1.5 to 1

Source: OECD

#2 Italy

Ratio of working age people to retirees in 2008: 3.0 to 1

Projected ratio in 2050: 1.5 to 1

Source: OECD

#1 Japan

Ratio of working age people to retirees in 2008: 2.8 to 1

Projected ratio in 2050: 1.2 to 1

Source: OECD

BONUS: The United States

Ratio of working age people to retirees in 2008: 4.7 to 1

Projected ratio in 2050: 2.6 to 1

Source: OECD

And where are they taxing big to pay for pensioners?

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.