Abstract
Demographic developments are unfavourable for the financing of pension schemes in most OECD countries, implying continued growth in pension expenditure in virtually all OECD countries. This chapter examines the vulnerability of pension systems, with an emphasis on financial sustainability and adequacy. Policy trade-offs and complementarities are reviewed and flanking policies, which could underpin successful pension reforms, are examined. Automatic adjustment mechanisms are highlighted, as are the roles of prudential regulation and buffer or reserve funds in the case of shocks.
The author is member of the Economics Department of the OECD. The author thanks Corinne Chanteloup for statistical assistance and Peter Hoeller for comments on earlier drafts. Regretted Debbie Bloch contributed to an earlier version. The opinions expressed in this paper are the author’s and do not necessarily correspond to those of the OECD or its member countries’.
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Fall, F. (2019). Sustainability and Adequacy of Pension Systems Across the OECD: Shocks, Robustness and Policies. In: da Costa Cabral, N., Cunha Rodrigues, N. (eds) The Future of Pension Plans in the EU Internal Market. Financial and Monetary Policy Studies, vol 48. Springer, Cham. https://doi.org/10.1007/978-3-030-29497-7_6
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DOI: https://doi.org/10.1007/978-3-030-29497-7_6
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