ECONOMIC-ASPECTS OF PENSION REFORM IN OECD COUNTRIES

The main challenge for pension reform in all OECD countries is the agi ng of population all these countries are confronted with. The paper re views central economic issues involved in the three main policy option s under discussion, makes selected reference to experience in OECD cou ntries, and highlights recent research results as well as unresolved r esearch issues in these areas. The three options analyzed are (1) to i ncrease the effective retirement age; (2) to save for future decades i n which aging is peaking; and (3) to change the form of financing, dem anding direct contributions not only from labor but also from other fa ctors of production. Labor market issues in relation to retirement dec isions are given particular weight in the paper since the main contrib ution for coping with demographic shifts may be restricted to an incre ase in the effective retirement age.