The global population is rapidly aging, and this process poses serious risks for pension systems.
According to **Modern.az**, this was noted in the document titled “Pensions at a Glance – 2025” by the Organisation for Economic Co-operation and Development (OECD).
It is stated that declining birth rates and people living longer weaken financial stability in many countries.
The report notes that the demographic situation in OECD countries will change dramatically over the next 25 years. By 2050, there will be 52 people aged 65 and over for every 100 people aged 20–64. For comparison, this figure was 33 in 2025 and 22 in 2000.
The increase in the elderly population is faster in some countries. Particularly in Korea, this indicator is expected to rise by approximately 50 percentage points. In Greece, Italy, Poland, Slovakia, and Spain, an increase of more than 25 percentage points is projected.
OECD Secretary-General Mathias Cormann stated that population aging is a major structural challenge for all member countries. According to him, the working-age population will decrease by 13 percent over the next 40 years. By 2060, a 14 percent decline in GDP per capita is possible. This situation will reduce government revenues while increasing social and pension expenditures related to aging.
The report emphasizes that people living longer and healthier lives require a new approach to pension systems. OECD countries are advised to increase the effective retirement age and expand employment opportunities for older people.
According to projections, the number of people aged 20–64 will decrease by more than 30 percent over the next 40 years in Estonia, Greece, Spain, Italy, Japan, Korea, Latvia, Lithuania, Poland, and Slovakia. Based on current legislation, the average retirement age in OECD countries is already rising. For those retiring in 2024, this figure is 64.7 years for men and 63.9 years for women. For those starting their careers from 2024, the retirement age is set at 66.4 and 65.9 years, respectively. In some countries, this limit may be 70 years and above in the future.
The report also highlights gender differences. In OECD countries, pensions received by women are, on average, 23 percent lower than those received by men. The gender gap in lifetime earnings averages 35 percent. This difference is mainly attributed to women's lower participation in the labor market, shorter working hours, and lower wages.
According to experts, population aging is a global problem and poses a serious challenge, especially for developed countries. To solve the problem, increasing labor productivity, automation and robotization, promoting the institution of family, improving housing affordability, as well as strengthening state programs for the prevention and treatment of infertility are considered important.
