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Assessing the sustainability of pension reforms in Europe

Published online by Cambridge University Press:  09 March 2020

Aaron George Grech
Aaron George Grech*
Affiliation:
London School of Economics and Political Science, Centre for Analysis of Social Exclusion, London, UK Central Bank of Malta, Modelling & Research Office, Valletta, Malta
*
*Emails: a.g.grech@lse.ac.uk; grechga@centralbankmalta.org
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Abstract

Europe's pensions landscape has changed dramatically since the 1990s. This paper tries to assess better the impact of these changes using a broad social sustainability framework. Pension wealth estimates for a variety of hypothetical cases are used to assess the ability of systems to alleviate poverty and maintain living standards, while setting out how reforms could change future costs and relative entitlements for different generations. By focusing on all prospective transfers rather than those at retirement and by looking into the interaction between entitlements and labour participation, this approach provides additional insights into the impact of reforms. Our estimates suggest that generosity has fallen significantly, but remains strong in many countries. However, moves to link benefits to contributions have raised adequacy concerns for certain groups and strengthened the need for longer careers. Although reforms have helped address fiscal challenges, in many countries pressures remain strong and further reforms are likely.

Keywords

social securitypublic pensionsretirementpovertyretirement policies
Type
Research Notes
Information
Journal of International and Comparative Social Policy , Volume 29 , Issue 2 , June 2013 , pp. 143 - 162
Copyright
Copyright © 2013 Taylor & Francis

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