Issue Intergenerational fairness under ageing and climate costs

Summary

The report argues that as the ratio between workers and non-workers deteriorates, state revenues and spending come under strain and the budgetary burden of higher pension costs grows. Young people consequently carry a heavier load while receiving fewer social benefits, which could spill over into political debate about fairness between generations. If older people make up an ever larger share of the electorate, political attention could move toward issues they care about, such as income security, health care, stability and the management of migration flows. The report also addresses how the costs of climate change are distributed between generations. It explains that adaptation and mitigation costs run largely through the government, yet younger and future generations bear a relatively larger social and economic share of the burden.