Publication:
Building Voluntary Pension Schemes in Emerging Economies

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dc.contributor.authorRudolph, Heinz P.
dc.date.accessioned2016-08-10T14:48:22Z
dc.date.available2016-08-10T14:48:22Z
dc.date.issued2016-08
dc.description.abstractAfter the financial crisis, some Central and Eastern Europe countries partially or totally reversed the pension reforms they had initiated in the previous two decades. In the presence of an aging population in the region, reductions in replacement rates will be the most likely adjustment mechanism for the social security systems to remain fiscally sustainable. In some other emerging economies, mandatory funded schemes are operating with low contribution rates, and policy makers have not been able to pass legislation to increase the contribution rate to ensure adequate pensions for future retirees. Voluntary pension schemes that take into consideration the behavioral aspects of individuals may provide a viable solution for countries that need to increase retirement savings but face political resistance to mandatory increases in contribution rates. The proposed mechanism shifts the focus of voluntary pension plans from "opt-in" to "opt-out" schemes. The emphasis is in setting the default options in a way that employees have to make an explicit decision if they do not want to contribute to the pension system. The paper builds on the experiences of several countries, including Italy, New Zealand, the United Kingdom, and the United States, and proposes policy recommendations and good practices for building voluntary pension systems. These opt-out schemes should be able to provide high coverage among white and blue collar workers, and consequently improve the future pensions of individuals.en
dc.identifierhttp://documents.worldbank.org/curated/en/2016/08/26628945/building-voluntary-pension-schemes-emerging-economies
dc.identifier.doi10.1596/1813-9450-7779
dc.identifier.urihttps://hdl.handle.net/10986/24860
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7779
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectpensions
dc.subjectcontributory pensions
dc.subjectpension funds
dc.subjectbehavioral defaults
dc.subjectinvestment incentives
dc.titleBuilding Voluntary Pension Schemes in Emerging Economiesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleBuilding Voluntary Pension Schemes in Emerging Economies
okr.date.disclosure2016-08-03
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2016/08/26628945/building-voluntary-pension-schemes-emerging-economies
okr.guid784071470231398665
okr.identifier.doi10.1596/1813-9450-7779
okr.identifier.externaldocumentum090224b0844c05be_2_0
okr.identifier.internaldocumentum26628945
okr.identifier.reportWPS7779
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2016/08/04/090224b0844c05be/2_0/Rendered/PDF/Building0volun0n0emerging0economies.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryItaly
okr.region.countryNew Zealand
okr.region.countryUnited Kingdom
okr.region.countryUnited States
okr.region.geographicalEastern Europe
okr.region.geographicalEurope
okr.topicFinance and Financial Sector Development::Non Bank Financial Institutions
okr.topicPrivate Sector Development::Emerging Markets
okr.topicSocial Protections and Labor::Pensions & Retirement Systems
okr.unitFinance and Markets Global Practice Group
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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