The paper examines pension reforms under population ageing. The concepts of implicit pension debtʺ, implicit taxʺ and internal rate of returnʺ are first introduced with the help of a three-period model. Using stylised facts, ageing is traced to low fertility and increasing longevity....

This article explores how the Stability and Growth Pact (SGP) may cope with the future costs of population ageing in the European Union. Clearly, population ageing has forced countries to reform their pension systems, and will continue to do so, both by reducing the generosity of pension...