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Global Pension Systems and Their Reform: Worldwide Drivers, Trends, and Challenges

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  • Holzmann, Robert

    () (University of New South Wales)

Abstract

Across the world, pension systems and their reforms are in a constant state of flux driven by shifting objectives, moving reform needs, and a changing enabling environment. The ongoing worldwide financial crisis and the adjustment to an uncertain “new normal” will make future pension systems different from past ones. The objectives of this policy review paper are threefold: (i) to briefly review recent and ongoing key changes that are triggering reforms; (ii) to outline the main reform trends across pension pillars; and (iii) to identify a few areas on which the pension reform community will need to focus to make a difference. The latter includes: creating solutions after the marginalization or, perhaps, demise of Bismarckian systems in countries with high rates of informality; keeping the elderly in the labor market; and addressing the uncertainty of longevity increases in pension schemes.

Suggested Citation

  • Holzmann, Robert, 2012. "Global Pension Systems and Their Reform: Worldwide Drivers, Trends, and Challenges," IZA Discussion Papers 6800, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp6800
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    5. Rofman, Rafael & Oliveri, Maria Laura, 2012. "Pension coverage in Latin America : trends and determinants," Social Protection Discussion Papers and Notes 70926, The World Bank.
    6. World Bank, 2009. "Pensions in Crisis : Europe and Central Asia Regional Policy Note," World Bank Other Operational Studies 18728, The World Bank.
    7. Roberto Rocha & Dimitri Vittas & Heinz P. Rudolph, 2011. "Annuities and Other Retirement Products : Designing the Payout Phase," World Bank Publications, The World Bank, number 2272, June.
    8. Barr, Nicholas & Diamond, Peter, 2008. "Reforming Pensions: Principles and Policy Choices," OUP Catalogue, Oxford University Press, number 9780195311303.
    9. Greg Brunner & Richard Hinz & Roberto Rocha, 2008. "Risk-based Supervision of Pension Funds : Emerging Practices and Challenges," World Bank Publications, The World Bank, number 6419, June.
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    Citations

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    Cited by:

    1. Krpan, Mira & Pavković, Ana & Galetić, Fran, 2019. "Comparison of Sustainability Indicators of Pension Systems in the New EU Member States," 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations (Dubrovnik, 2019), in: 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations. April 5th - 6th, 2019, Dubrovn, pages 470-484, Governance Research and Development Centre (CIRU), Zagreb.
    2. Hessel, Philipp & Sayer, Pieter & Riumallo-Herl, Carlos, 2020. "Educational inequalities in disability linked to social security coverage among older individuals in five Latin American countries," Social Science & Medicine, Elsevier, vol. 267(C).
    3. Holzmann, Robert, 2013. "A Provocative Perspective on Population Aging and Old-Age Financial Protection," IZA Discussion Papers 7571, Institute of Labor Economics (IZA).
    4. Machado, Fabiana & Vesga, Giselle, 2015. "The Political Economy of Pension Reform: Public Opinion in Latin America and the Caribbean," IDB Publications (Working Papers) 7258, Inter-American Development Bank.
    5. Rudolph, Alexandra & Priebe, Jan, 2015. "Pension programs around the world: determinants of social pension," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112986, Verein für Socialpolitik / German Economic Association.
    6. Casamatta, G. & Batté, L., 2016. "The Political Economy of Population Aging," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 381-444, Elsevier.
    7. Christian Keuschnigg, 2016. "Aging, Taxes and Pensions in Switzerland," CESifo Working Paper Series 5714, CESifo.
    8. Evsey T. Gurvich, 2019. "Long-Term Global Trends in Pension Policy," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 127006, Russia, issue 6, pages 9-26, December.
    9. Jacques Wels, 2016. "The Statistical Analysis of End of Working Life: Methodological and Sociological Issues Raised by the Average Effective Age of Retirement," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(1), pages 291-315, October.
    10. Borbála Szüle, 2013. "Savings and Implicit Debt in Pension Systems," Public Finance Quarterly, State Audit Office of Hungary, vol. 58(3), pages 334-348.
    11. Dorfman, Mark & Palacios, Robert, 2012. "World Bank support for pensions and social security," Social Protection Discussion Papers and Notes 70925, The World Bank.
    12. Fabiana Machado & Giselle Vesga, 2015. "The Political Economy of Pension Reform: Public Opinion in Latin America and the Caribbean," IDB Publications (Working Papers) 91457, Inter-American Development Bank.

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    More about this item

    Keywords

    population aging; longevity; financial crisis; multi pillar pension systems; social pension; NDC; MDC;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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