Grech, Aaron George (2013): Pension reform sustainability in the EU: a pension wealth-based framework.
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Abstract
Most assessments of pension sustainability focus on the projected fall in spending. However interest in the impact on adequacy, usually measured by replacement rates, is increasing. In this paper we show that replacement rates have significant defects, related to being point-in-time indicators and the use of unrepresentative assumptions. We argue for the use of pension wealth calculated using more realistic assumptions. Looking at ten EU countries, we find that while generosity decreased significantly, systems’ effectiveness in alleviating poverty remain strong in countries where minimum pensions were improved. However, moves to link benefits to contributions have raised concerns for women and for those on low incomes. Though reforms have reduced the fiscal challenge of ageing, in many countries pressures will persist and further reforms are likely.
Item Type: | MPRA Paper |
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Original Title: | Pension reform sustainability in the EU: a pension wealth-based framework |
Language: | English |
Keywords: | Social Security and Public Pensions; Retirement; Poverty; Retirement Policies. |
Subjects: | H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I38 - Government Policy ; Provision and Effects of Welfare Programs J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J26 - Retirement ; Retirement Policies |
Item ID: | 48800 |
Depositing User: | Aaron George Grech |
Date Deposited: | 02 Aug 2013 09:28 |
Last Modified: | 29 Sep 2019 13:36 |
References: | Blondell, Sveinbjorn / Scarpetta, Stefano (1999): The retirement decision in OECD Countries. OECD Economics Department Working Papers No. 202. Brugiavini, Agar / Maser, Karen / Sunden, Annika (2005): Measuring pension wealth. http://www.lisproject.org/lws/introduction/files/brugiavini_rev.pdf. European Central Bank (2009): Workshop on pensions. http://www.ecb.int/pub/pdf/other/ecbeurostatworkshoponpensions201002en.pdf. European Commission (2009): Portfolio of indicators for the monitoring of the European Strategy for Social Protection and Social Inclusion. European Commission (2010): Progress and key challenges in the delivery of adequate and sustainable pensions in Europe, European Economy Occasional Papers 71. European Commission (2012): An agenda for adequate, safe and sustainable pensions, White Paper COM(2012) 55 final. Holzmann, Robert / Hinz, Richard (2005): Old-age income support in the 21st century: An international perspective on pension systems and reform. International Labour Office (1952): Social Security (Minimum Standards) Convention No.102. OECD (2007): Pensions at a glance 2007: public policies across the OECD. OECD (2011): Pensions at a glance 2011. Schneider, Ondrej (2009): Reforming pensions in Europe: Economic fundamentals and political factors. CESifo Working Paper No. 2572. Whitehouse, Edward (2003): The value of pension entitlements: A model of nine OECD countries. OECD Social, Employment and Migration Working Papers no. 9. World Bank Independent Evaluation Group (2006): Pension reforms and the development of pension systems: An evaluation of World Bank assistance. Zaidi, Asghar / Grech, Aaron George (2007): Pension policy in EU25 and its impact on pension benefits, in: Benefits: The journal of poverty and social justice 15, Vol: 3, p. 229-311. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/48800 |