IDEAS home Printed from https://ideas.repec.org/p/bdi/wptemi/td_503_04.html
   My bibliography  Save this paper

Il pilastro privato del sistema previdenziale. Il caso del Regno Unito

Author

Listed:
  • Francesco Spadafora

    () (Banca d'Italia)

Abstract

In striking contrast with the majority of other European economies, the UK pension system does not pose problems of financial sustainability to public finances. Public expenditure for pensions is foreseen to remain relatively stable for the next 50 years, around 5 percent of GDP, thanks to the considerable stock of privately-funded, actuarially-fair pension provision accumulated by the country, thus making the system (in government�s words) �a fair deal between generations�. Nonetheless, an intense debate is under way on the alleged crisis of the pension system, resulting not only from the private cost but also from the level of the benefits. The debate encompasses both the demand and the supply side of the pension system. On the one hand, the discussion focuses on the allegedly inadequate level of national savings, particularly by the population on lowest income, which would not produce in the future a level of pension high enough to guarantee an appropriate standard of living in retirement. On the other hand, the fall in equities in the period 2000-02 highlighted the fact that one of the main characteristics of the system, the prevalence of defined-benefit occupational pension funds, would act as a transmission channel of equity market shocks to the corporate sector of the economy. Moreover, in the light of the major role played by life assurances in the supply of pension products and growing interlinkages between the banking and insurance sectors, the financial soundness of life assurances takes on a particular relevance for the stability of the financial system as a whole. The present work illustrates the structural characteristics and significant peculiarities of the UK pension system, with particular emphasis on the evolution of pension savings in the private sector. Furthermore, it surveys the main aspects of the current debate and the different measures put forward as possible solutions. With reference to Italy, the UK experience may constitute a source of meaningful reflections for the current debate on the evolution of private pensions.

Suggested Citation

  • Francesco Spadafora, 2004. "Il pilastro privato del sistema previdenziale. Il caso del Regno Unito," Temi di discussione (Economic working papers) 503, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_503_04
    as

    Download full text from publisher

    File URL: http://www.bancaditalia.it/pubblicazioni/temi-discussione/2004/2004-0503/tema_503.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Atkinson, A.B. & Brandolini, A., 2000. "Promise and Pitfalls in the Use of 'Secondary' Data -Sets: Income Inequality in OECD Countries," Papers 379, Banca Italia - Servizio di Studi.
    2. Marchetti, D.J., 1999. "Markup and the Business Cycle: Evidence from Italian Manufacturing Branches," Papers 362, Banca Italia - Servizio di Studi.
    3. Domenica J. Marchetti, 1999. "Markup and the Business Cycle: Evidence from Italian Manufacturing Branches," Temi di discussione (Economic working papers) 362, Bank of Italy, Economic Research and International Relations Area.
    4. Cannari Luigi & D'Alessio G., 2002. "La distribuzione del reddito e della ricchezza nelle regioni italiane," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 4, pages 809-848.
    5. Lorenzo Forni, 2004. "Centralization of wage bargaining and the unemployment rate: revisiting the hump-shape hypothesis," Temi di discussione (Economic working papers) 492, Bank of Italy, Economic Research and International Relations Area.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alberto Franco Pozzolo, 2004. "Endogenous growth in open economies: a surveys," Temi di discussione (Economic working papers) 527, Bank of Italy, Economic Research and International Relations Area.
    2. Pozzolo, Alberto Franco, 2004. "The Role of Guarantees in Bank Lending," Economics & Statistics Discussion Papers esdp04021, University of Molise, Dept. EGSeI.
    3. Gabriele Semeraro, 2007. "Should financial accounts include future pension liabilities," IFC Bulletins chapters,in: Bank for International Settlements (ed.), Proceedings of the IFC Conference on "Measuring the financial position of the household sector", Basel, 30-31 August 2006 - Volume 1, volume 25, pages 179-198 Bank for International Settlements.

    More about this item

    Keywords

    fondi pensione; previdenza privata; means-testing;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdi:wptemi:td_503_04. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/bdigvit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.