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Last Lessons Learned from the Swedish Public Pension System

In: Economic Challenges of Pension Systems

Author

Listed:
  • María Carmen Boado-Penas

    (Institute for Financial and Actuarial Mathematics (IFAM), University of Liverpool)

  • Poontavika Naka

    (Chulalongkorn Business School, Department of Statistics)

  • Ole Settergren

    (Swedish Pensions Agency)

Abstract

Retirement systems across the world are undergoing major reforms to adapt to continuously changing economic and demographic factors. Among these major changes are the so-called notional defined contribution pension schemes (NDCs), first developed about 20 years ago in countries such as Italy, Latvia, Poland and Sweden. These pension schemes attempt to reproduce the logic of a financial defined contribution pension plan within a pay-as-you-go framework. Among the countries with NDCs, Sweden is the only one where an automatic balancing mechanism goes hand in hand with the prior calculation of a financial solvency indicator that emerges from an actuarial balance sheet. This chapter describes the Swedish pension experience over the 2007–2015 period through its accounting method, together with the problems faced by the system and the policy responses.

Suggested Citation

  • María Carmen Boado-Penas & Poontavika Naka & Ole Settergren, 2020. "Last Lessons Learned from the Swedish Public Pension System," Springer Books, in: Marta Peris-Ortiz & José Álvarez-García & Inmaculada Domínguez-Fabián & Pierre Devolder (ed.), Economic Challenges of Pension Systems, chapter 0, pages 235-254, Springer.
  • Handle: RePEc:spr:sprchp:978-3-030-37912-4_11
    DOI: 10.1007/978-3-030-37912-4_11
    as

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