Age structure of the population in Belgium and social security

Abstract

The process of ageing of the population has become a fundamental issue in most European countries. Besides the ageing process also non-demographic factors have an impact on the expenditures for social security. The paper deals with these factors after describing the expected changes in the age structure of the population in Belgium. Special attention is given to the impact of the ageing of the population on the pension problem. Based on a simple formula a series of percentages of taxation have been calculated as a function of shifts in the proportion of retired vs. active population and in the proportion of the average income vs. the average amount of pension. One of the conclusions is that the progressive ageing of the population will become the most significant factor in the growth of social expenditures.