The Pensions Commission is an independent body established by the Government to review the adequacy of current arrangements for private pensions and retirement savings in the UK, and to make recommendations on appropriate policy changes, including the option of moving to a compulsory system. The Second Report of the Pensions Commission, sets out the Commission's conclusions on the likely evolution of the UK pension system if policy is unchanged, and makes recommendations for a new policy direction. Recommendations are based on two key elements: the automatic enrolment of employees into either a new National Pensions Savings System or into existing company pension schemes, with an option for employees to opt-out, and with a modest compulsory employer matching contribution; and reform of state pension provision in order to make it simpler to understand and less means-tested. The Commission concludes that these reforms will require some increase in public expenditure on pensions as a percentage of GDP over the next 45 years, and that increases in state pension ages will be needed to keep that increase within sustainable levels over the long term. The Commission presents a range of possible combinations of public expenditure and state pensions ages, and calls for a public debate to consider these options. It also recommends the establishment of a successor body to continue to review the situation and report to Parliament and government every four years.
The Pensions Commission is an independent body established by the Government to review the adequacy of current arrangements for private pensions and retirement savings in the UK, and to make recommendations on appropriate policy changes, including the option of moving to a compulsory system. The Second Report of the Pensions Commission, sets out the Commission's conclusions on the likely evolution of the UK pension system if policy is unchanged, and makes recommendations for a new policy direction. Recommendations are based on two key elements: the automatic enrolment of employees into either a new National Pensions Savings System or into existing company pension schemes, with an option for employees to opt-out, and with a modest compulsory employer matching contribution; and reform of state pension provision in order to make it simpler to understand and less means-tested. The Commission concludes that these reforms will require some increase in public expenditure on pensions as a percentage of GDP over the next 45 years, and that increases in state pension ages will be needed to keep that increase within sustainable levels over the long term. The Commission presents a range of possible combinations of public expenditure and state pensions ages, and calls for a public debate to consider these options. It also recommends the establishment of a successor body to continue to review the situation and report to Parliament and government every four years.
Revija Za Socijalnu Politiku Journal of Social Policy, 9(3-4), 2002, pp.343-364.
Publisher:
University of Zagreb
This paper discusses the building blocks of pension reform in the light of economic theory; and their application to different types of economy. The main conclusions are threefold: the key variable is effective governments' from an economic perspective; the difference between pay-as- you-go is second order. The range of potential choice over pension design is wide. One size does not fit all. (Article in Croatian).
This paper discusses the building blocks of pension reform in the light of economic theory; and their application to different types of economy. The main conclusions are threefold: the key variable is effective governments' from an economic perspective; the difference between pay-as- you-go is second order. The range of potential choice over pension design is wide. One size does not fit all. (Article in Croatian).
International Journal of Social Welfare, 19(2), April 2010, pp.236-245.
Publisher:
Wiley
China’s old-age social security system has long been largely restricted to urban areas. This exacerbates the already severe rural–urban economic disparity, slows the rate of rural poverty reduction, poses a threat to social stability, and raises social justice concerns. This analysis draws on evidence from a number of sources including interviews with experts on China, Chinese government documents, Chinese newspaper accounts, and other sources from other countries. Based on the analysis of what has been tried in other countries and the current situation in rural China, this paper offers some suggestions for Chinese policy makers. It suggests that, for rural China, a universal non-contributory old-age pension deserves serious consideration, and refers to a proposed model as a Rural Old-Age Social Pension. It proposes an annual benefit level for each pensioner set at 4% of China’s GDP per capita, but suggests that it could first be introduced at a lower level and at a relatively high age of eligibility. The proposed model will reduce the level of poverty in rural areas and the degree of income inequality between rural and urban areas while simultaneously promoting social and political stability.
China’s old-age social security system has long been largely restricted to urban areas. This exacerbates the already severe rural–urban economic disparity, slows the rate of rural poverty reduction, poses a threat to social stability, and raises social justice concerns. This analysis draws on evidence from a number of sources including interviews with experts on China, Chinese government documents, Chinese newspaper accounts, and other sources from other countries. Based on the analysis of what has been tried in other countries and the current situation in rural China, this paper offers some suggestions for Chinese policy makers. It suggests that, for rural China, a universal non-contributory old-age pension deserves serious consideration, and refers to a proposed model as a Rural Old-Age Social Pension. It proposes an annual benefit level for each pensioner set at 4% of China’s GDP per capita, but suggests that it could first be introduced at a lower level and at a relatively high age of eligibility. The proposed model will reduce the level of poverty in rural areas and the degree of income inequality between rural and urban areas while simultaneously promoting social and political stability.
Chapter 1 explains the recent history and current system of pension provision; chapter 2 describes the problems which have led to recent debate; chapter 3 looks at the economics of pension provision; and chapters 4, 5 and 6 outline proposals for reform.
Chapter 1 explains the recent history and current system of pension provision; chapter 2 describes the problems which have led to recent debate; chapter 3 looks at the economics of pension provision; and chapters 4, 5 and 6 outline proposals for reform.
Subject terms:
older people, pensions, policy, social policy, economics;
Journal of European Social Policy, 22(5), December 2012, pp.455-471.
Publisher:
Sage
... states typologies. The analysis uses internationally comparable microdata drawn from the 2007 EU-Statistics on Income and Living Conditions (EU-SILC) in order to account for the distribution of resources across households. Several measures of distributional outcomes (benefits, pensions, taxes, and social insurance contributions) are presented, followed by the results of the hierarchical cluster
Welfare state typologies are generally based on the institutional design of welfare policies. However, it is unclear whether these typologies persist when they are applied to effective redistributive outcomes of welfare states’ tax and transfer policies. The purpose of this study was to test whether the microeconomic outcomes of welfare state institutions cluster among the established welfare states typologies. The analysis uses internationally comparable microdata drawn from the 2007 EU-Statistics on Income and Living Conditions (EU-SILC) in order to account for the distribution of resources across households. Several measures of distributional outcomes (benefits, pensions, taxes, and social insurance contributions) are presented, followed by the results of the hierarchical cluster analysis. The findings validate the common expectation of overall redistribution according to the welfare state typology (high in Nordic and Continental, lower in southern and Anglo-Saxon countries). They further suggest that the distributional outcomes of Western European welfare states do indeed cluster within the established regimes known as the social-democratic, conservative, liberal and southern model. Belgium and the Netherlands emerge as hybrid cases lying between the social-democratic and conservative model.
Subject terms:
models, pensions, taxation, welfare state, benefits, economics, European Union;
European Centre for Social Welfare Policy and Research
Publication year:
2010
Pagination:
17p.
Place of publication:
Vienna
The impact of European Union (EU) national government economic and social policies on pension systems and pension income adequacy for future pensioners is examined in this paper. It begins by setting the context, highlighting sustainability challenges arising from population ageing and the financial, fiscal and economic crises. It analyses the impact of pension reforms, including benefit ratio changes (the likely development of the relative value of the average pension relative to the likely evolution of the average wage). It discusses how pension reforms have reshaped the structure of pension systems across EU countries and the adequacy of pension incomes of future retirees (including expected changes in the average first pension as a proportion of the average wage). It concludes by discussing policy challenges faced by EU countries in ensuring sustainability of pension systems and maintaining adequacy of pension incomes.
The impact of European Union (EU) national government economic and social policies on pension systems and pension income adequacy for future pensioners is examined in this paper. It begins by setting the context, highlighting sustainability challenges arising from population ageing and the financial, fiscal and economic crises. It analyses the impact of pension reforms, including benefit ratio changes (the likely development of the relative value of the average pension relative to the likely evolution of the average wage). It discusses how pension reforms have reshaped the structure of pension systems across EU countries and the adequacy of pension incomes of future retirees (including expected changes in the average first pension as a proportion of the average wage). It concludes by discussing policy challenges faced by EU countries in ensuring sustainability of pension systems and maintaining adequacy of pension incomes.
Subject terms:
income, older people, pensions, social policy, economics, government policy;
European Commission. Analytical Support on the Socio-Economic Impact of Social Protection Reforms
Publication year:
2011
Pagination:
22p.
Place of publication:
Cologne
... with high public deficits and are in a number of cases understood as the main cause for retrenchment and weakening of the welfare state. This report examines the impact of austerity measures on three particular areas, namely pensions, public health, and long-term care, for 34 European countries. Pension policies have been in the focus of social protection related austerity measures, often targeted at increasing the effective retirement age. This included a rise in the statutory retirement age, tightening eligibility conditions for early exit pensions, and linking the pension system to the development of life expectancy. Reforms and public/political debates in the health care sector have been less pronounced and focused as compared with pension policies. Reform goals include both cost containment
There have been rather substantial and dramatic changes in social protection systems across European countries in 2010-2011. The financial, economic and budgetary crisis has not led to a complete re-orientation of social protection policies, but has often strengthened the rationale for reforms. Austerity measures have impacted quite heavily on social protection systems in particular in countries with high public deficits and are in a number of cases understood as the main cause for retrenchment and weakening of the welfare state. This report examines the impact of austerity measures on three particular areas, namely pensions, public health, and long-term care, for 34 European countries. Pension policies have been in the focus of social protection related austerity measures, often targeted at increasing the effective retirement age. This included a rise in the statutory retirement age, tightening eligibility conditions for early exit pensions, and linking the pension system to the development of life expectancy. Reforms and public/political debates in the health care sector have been less pronounced and focused as compared with pension policies. Reform goals include both cost containment and measures to improve the quality of and access to health care services. Across countries, an overall priority to provide support for home care as opposed to institutional care can be observed. There are various measures to encourage home care, e.g. financial allowances to purchase private support, labour market regulations which allow a temporary reduction of working hours for relatives, and publicly financed social services to enable a person in need of long-term care to stay as long as possible at home.
Subject terms:
long term care, pensions, public health, social welfare, social care provision, economics;
International Social Work, 54(3), May 2011, pp.344-360.
Publisher:
Sage
Individual quality of life in retirement is affected by material circumstances. Therefore, pension provision will have a significant impact for older people, and may affect peoples’ need for assistance through social services. Therefore, government pension policy requires considerable attention. This article examines the relationship between social work, poverty and social policy. It shows how the social, economic and political context within which older service users live is crucial to their experience of successful ageing. The article then considers the link between poverty in older age and pension receipt and the role of social policy formulation in the UK with particular reference to New Labour governance. Pension policy in the UK is then examined within a European context. In ending, the article considers whether pension poverty levels are likely to change under the new government.
Individual quality of life in retirement is affected by material circumstances. Therefore, pension provision will have a significant impact for older people, and may affect peoples’ need for assistance through social services. Therefore, government pension policy requires considerable attention. This article examines the relationship between social work, poverty and social policy. It shows how the social, economic and political context within which older service users live is crucial to their experience of successful ageing. The article then considers the link between poverty in older age and pension receipt and the role of social policy formulation in the UK with particular reference to New Labour governance. Pension policy in the UK is then examined within a European context. In ending, the article considers whether pension poverty levels are likely to change under the new government.
Subject terms:
older people, pensions, social policy, social work, ageing, economics;
As the results from the 2001 census show, the population of Scotland is shrinking. This has largely been a result of sustained low fertility and the current total period fertility rate is estimated to be 1.48. As a consequence the population of Scotland is getting older and it is projected that by 2009 there will be more people over pensionable age than those aged less than 16 years. In this paper the demographic situation of Scotland is reviewed in the context of European demography. From this review it will be made clear that the headline figures mask huge regional differences in both age structure and growth rates. The causes and consequences of this demographic profile will be discussed in the paper. Consideration is given to the impact on the Scottish economy, notably the labour force implications.
As the results from the 2001 census show, the population of Scotland is shrinking. This has largely been a result of sustained low fertility and the current total period fertility rate is estimated to be 1.48. As a consequence the population of Scotland is getting older and it is projected that by 2009 there will be more people over pensionable age than those aged less than 16 years. In this paper the demographic situation of Scotland is reviewed in the context of European demography. From this review it will be made clear that the headline figures mask huge regional differences in both age structure and growth rates. The causes and consequences of this demographic profile will be discussed in the paper. Consideration is given to the impact on the Scottish economy, notably the labour force implications.
Subject terms:
labour market, pensions, ageing, demographics, economics, expenditure;
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
Publisher:
Organisation for Economic Co-operation and Development
Publication year:
2005
Pagination:
114p.
Place of publication:
Paris
The demographic transition to older societies, in the most advanced economies but also beyond, is ushering in economic and financial changes. These were reviewed by the G10 in a 1998 report, The Macroeconomic and Financial Implications of Ageing Populations, which analysed the impact of population ageing on growth and living standards, public finances, financial markets and international capital flows. In line with some of the main recommendations of that report, pension system reforms have been undertaken since then in most G10 countries, and experience with private saving for retirement has continued to build up, with substantial and instructive differences across countries. This report examines the financial market and policy implications of the increasing importance of funded retirement saving.
The demographic transition to older societies, in the most advanced economies but also beyond, is ushering in economic and financial changes. These were reviewed by the G10 in a 1998 report, The Macroeconomic and Financial Implications of Ageing Populations, which analysed the impact of population ageing on growth and living standards, public finances, financial markets and international capital flows. In line with some of the main recommendations of that report, pension system reforms have been undertaken since then in most G10 countries, and experience with private saving for retirement has continued to build up, with substantial and instructive differences across countries. This report examines the financial market and policy implications of the increasing importance of funded retirement saving.
Subject terms:
labour market, pensions, policy, ageing, demographics, economics, financing;