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By Prof. Dr. Bruno COLMANT, Member of the Royal Academy of Belgium
In a few decades, the costs of an aging population will amount to almost one-third of GDP. This applies not only to pensions but especially to health care. This situation will require far-reaching reforms beyond the marginal adjustments made in recent years.
In Belgium, as in many other countries, the public pension system is known as a pay-as-you-go system. What does this mean? The Bismarckian pay-as-you-go pension system, named after the German statesman Otto von Bismarck, is based on intergenerational solidarity. Working people finance the pensions of pensioners directly through their social security contributions. The transfer system rewards workers in all sectors who have...
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