The Inverting Pyramid : Pension Systems Facing Demographic Challenges in Europe and Central Asia Schwarz, Anita M. Arias, Omar S. Zviniene, Asta Rudolph, Heinz P. Eckardt, Sebastian Koettl, Johannes Immervoll, Herwig Abels, Miglena 2014-02-12T21:53:31Z 2014-02-12T21:53:31Z 2014-02-12
dc.description.abstract Pension systems in Europe and Central Asia are facing unprecedented demographic change. While many of the countries in the region have undertaken reforms when the economy faces difficult times, these reforms are frequently reversed when the economy improves. The demographic challenges that the region faces require a sustained effort toward changing the pension system toward something which provides adequate and sustainable benefits. The book documents the increased generosity of pension systems in Europe from their initial inception, noting that the current expectations of the public are based on the most recent round of generosity. The book seeks to show a nontechnical audience that such generosity is neither based on customary practice nor affordable in the future. The increased generosity in the past was only possible because the demographic pyramid was expanding, but as it inverts with fewer young people and more elderly, that generosity will no longer be affordable. Returning to the pension system of the 1970’s will go a long way toward providing adequate and sustainable benefits in the future. Moving to a more sustainable system will require reforms to labor markets, improvements in savings mechanisms, and may require additional public resources. The extent to which a country can undertake reforms in labor markets, savings, and public finances can influence the extent to which its pension system will have to change, with different solutions possible for different countries. But in all cases, the changes that need to be made have to be widely discussed and publicly accepted to prevent reversals. The book hopes to stimulate widespread public discussion of the issue to help countries make sustainable choices with gradual implementation, before they face such daunting challenges that they have to undertake sudden, harsh measures. en
dc.identifier.isbn 978-0-8213-9908-8
dc.identifier.other 10.1596/978-0-8213-9908-8
dc.language.iso en_US
dc.publisher Washington, DC: World Bank
dc.rights CC BY 3.0 IGO
dc.subject aging
dc.subject contribution rate
dc.subject contribution rate second pillars
dc.subject demographic change
dc.subject fiscal sustainability
dc.subject lump of labor fallacy
dc.subject migration
dc.subject notional defined contribution
dc.subject older workers
dc.subject pay as you go
dc.subject pensions
dc.subject retirement
dc.subject savings
dc.subject second pillars
dc.subject social insurance
dc.subject social pension
dc.subject taxation
dc.subject training
dc.subject work incentives
dc.subject working longer
dc.title The Inverting Pyramid : Pension Systems Facing Demographic Challenges in Europe and Central Asia en
dspace.entity.type Publication 2014-02-12
okr.doctype Publications & Research :: Publication
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Social Protection and Labor
okr.identifier.doi 10.1596/978-0-8213-9908-8
okr.language.supported en
okr.peerreview Academic Peer Review
okr.region.administrative Europe and Central Asia
okr.region.geographical East Asia
okr.region.geographical Europe and Central Asia
okr.region.geographical Eastern Europe
okr.sector Social protection and risk management :: Social safety nets
okr.topic Finance and Financial Sector Development :: Contractual Savings
okr.topic Finance and Financial Sector Development :: Public & Municipal Finance
okr.topic Macroeconomics and Economic Growth
okr.topic Social Protections and Labor :: Pensions & Retirement Systems
okr.unit ECSHD
relation.isAuthorOfPublication 21f6c4f6-d28e-593b-9319-412a8ae40efd
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