Serving the Aging Citizen
Deloitte’s Global Public Sector Research Director Bill Eggers has published a 40-page report titled Serving the Aging Citizen covering the implications of changing world demographics on governments. The report outlines four trends that will likely become more prominent in the coming decades:
- Tax system modernization. Governments will have to modernize their tax systems to reduce their dependence on personal income tax revenues. This means fewer exemptions that poke holes in the tax base and a shift away from narrow-based, idiosyncratic tax structures.
- Rises in the average retirement age. The erosion of the tax revenues from income and payroll taxes can be somewhat offset by extending the average retirement age. The retirement age in the OECD countries has started to tick up since the end of the 1990s, but a meaningful impact is unlikely without significant changes in the demand for older workers.
- Increase reliance on user fees. Citizens may be required to pay user fees for access to government services.
- Growth of public-private partnerships. The emergence of a much bigger and more sophisticated nonprofit sector will create new opportunities for partnering and leveraging private dollars for public causes.
The report has a number of charts and tables that highlight the world’s changing demographics. Although it’s written for a public sector audience, the report is worthwhile reading for those interested in demographic changes as an investment theme.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.