Paris, France – A recent report by the Organisation for Economic Co-operation and Development (OECD) warns of a significant acceleration in population aging in member countries over the next 25 years. This is placing increasing pressure on pension systems.
This was revealed in the “Pension Panorama 2025” report published by the organization. The report projected that the average number of people aged 65 and over in OECD countries will rise from 33 in 2025 to 52 in 2050. This is per 100 people aged 20 to 64 (i.e., those of working age). For comparison, this figure was only 22 in 2000.
South Korea leads the increase
The increase in the proportion of elderly people is expected to be particularly pronounced. The report anticipates a rise of approximately 50 percentage points, indicating a formidable demographic challenge.
Italy, Spain, Poland, Greece and Slovakia are expected to see increases exceeding 25 points.
Income and pension gap
The report revealed a gap in income between older people and the general population in the OECD region. In 2022, the average income of those aged 65 and over was 87% of the average income of the total population.
However, the report noted that the income of the elderly represents 100% or more of the average income of the total population in countries such as Italy, Israel, Luxembourg, and Mexico.
The gender gap is widening
Regarding pensions, the OECD noted that, on average, women receive monthly pensions that are a quarter less than those received by men in the region.
The gap is less than 10% in Estonia, Iceland, Slovakia, Slovenia, and the Czech Republic. It exceeds 35% in Austria, Mexico, the Netherlands, and the United Kingdom, and reaches over 47% in Japan.
However, the organization confirmed that the average pension gap between women and men has decreased from 28% in 2007 to 23% in 2024. This reduction is expected to continue.
