Aging, Taxes and Pensions in Switzerland

Arbeitspapier

The gains in life expectancy are expected to double the dependency ratio and increase population by 10% in Switzerland until 2050. To quantify the effects on pensions, taxes and social contributions, we use an overlapping generations model with five margins of labor supply: labor market participation, hours worked, job search, retirement, and on-the-job training. A passive fiscal strategy would be very costly. A comprehensive reform, including an increase in the effective retirement age to 68 years, may limit the tax increases to 4 percentage points of value added tax and reduce the decline of per capita income to less than 6%.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 5714

Classification and Topics

• Classification: Wirtschaft ; Computable and Other Applied General Equilibrium Models ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Social Security and Public Pensions ; Retirement; Retirement Policies ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: aging ; pensions ; taxation ; labor market effects ; growth

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Keuschnigg, Christian
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/128418
• Last update: 10.03.2025, 11:42 AM CET