Financing pensions: a european perspective

Rashpal Bhabra~Matthew Fletcher, United-Kingdom

Developed countries are getting older. With fewer and fewer people of working age supporting each retiree, how should a nation’s pensions be financed? Many European countries are reducing unfunded pay-as-you-go pension systems financed from general taxation, whilst growing a funded private pillar. We set out what we consider to be the key attributes of the private pillar. We identify the shortcomings of a substantial private system that is predominantly defined contribution in nature, and we suggest alternative designs for the private system that might complement defined contribution programmes to better match a nation’s economic and social objectives.
Date: 30 May - Time: 13:45 to 15:15 - Room: 253
Theme: 3.A. Actuarial problems related to the retirement of the baby-boom