Munich Personal RePEc Archive

Funded pension schemes: Economic effects and policy implications

Grech, Aaron George (1999): Funded pension schemes: Economic effects and policy implications. Published in: Central Bank of Malta Quarterly Review : pp. 58-68.


Download (261kB) | Preview


This paper reviews alternative pension systems and examines the arguments in favour of funded pension schemes. The benefits of the latter derive mainly from long-term economic efficiency gains rather than from the immediate relief of pressures on the fiscal balance. Indeed, the transition towards a funded scheme could imply an increase in government expenditure in the short run. Fiscal consolidation and the attainment of equilibrium in the external balance are essential prerequisites for a move towards a funded pension system to be conducted successfully.

MPRA is a RePEc service hosted by
the Munich University Library in Germany.