Abstract
Pensions are benefit contracts that replace a person’s earnings after she reaches old age and retires from the labour force. Pension systems vary widely across countries, but everywhere the government’s role is to provide a minimum through a mix of cash and medical benefits. Governments often provide tax incentives for employers and unions to sponsor occupational pension plans that complement the government-run system. The nature of the pension benefits promised and the assets that back them have profound effects on social welfare, on the development of a country’s domestic asset markets, and on the global financial system.
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Bodie, Z. (2018). Pensions. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2578
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2578
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