The Financial Crisis and Mandatory Pension Systems in Developing Countries : Short-and Medium-Term Responses for Retirement Income Systems

Dorfman, MarkHinz, RichardRobalino, David2012-08-132012-08-132008-12https://hdl.handle.net/10986/11130The international financial crisis has severely affected the value of pension fund assets worldwide. The unfolding global recession will also impose pressures on public pension schemes financed on a pay-as-you-go basis, while limiting the capacity of governments to mitigate both of theses effects. Governments are reacting to these events in different ways. Some are asking whether the balance between funded defined-contribution and unfunded pension schemes should be reconsidered. A few have already taken actions to reverse prior reforms. This note discusses the potential impacts of the financial crisis on fully funded and pay-as-you-go retirement-income systems in World Bank client countries, and identifies key short-and medium-term policy responses.CC BY 3.0 IGOACCESS TO BANKACCESS TO BANK LOANSACCRUAL RATEADDITIONAL FINANCINGAGING POPULATIONSANNUAL RETURNANNUITIESANNUITYANNUITY PURCHASEASSET ALLOCATIONSASSET PRICESASSET VALUESAVERAGE EARNINGSAVERAGE PENSIONBANK LOANSBANKING SYSTEMBANKSBASIC PENSIONBENEFIT FORMULASBONDSCALCULATIONCALCULATIONSCASH BALANCESCASH FLOWCLIENT COUNTRIESCOMPENSATIONCONTRIBUTIONCONTRIBUTION RATECONTRIBUTION RATESCONTRIBUTION SCHEMESCONTRIBUTIONSCURRENT EXPENDITURESDEBTDEBT FINANCINGDEFINED CONTRIBUTION PENSIONSDEFINED-BENEFIT PENSIONDEFINED-CONTRIBUTION PENSIONSDEMOGRAPHICDEVELOPING COUNTRIESDISABILITYDISABILITY BENEFITSDIVERSIFICATIONDIVERSIFIED PORTFOLIOEARLY RETIREMENTEARNINGSECONOMIC DEVELOPMENTSECONOMIC DOWNTURNECONOMIC SHOCKSECONOMIC VOLATILITYELDERLYEMPLOYEEENTERPRISE FINANCINGEXPOSUREEXTERNAL DEBTFINANCIAL ASSETSFINANCIAL CRISISFINANCIAL FLOWSFINANCIAL IMPACTFINANCIAL INSTITUTIONSFINANCIAL ISSUESFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL RISKSFINANCIAL SECTORFINANCIAL SITUATIONFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCIAL VOLATILITYFISCAL DEFICITSFORMAL PENSIONFORMAL PENSION SYSTEMFULL-CAREER WORKERSFUND ASSETSFUNDED ACCOUNTFUNDED PENSIONSFUNDED SCHEMEFUNDED SCHEMESFUNDED SYSTEMSGOVERNANCE STANDARDSGOVERNMENT DEBTGROWTH RATEGUARANTEED BENEFITHUMAN DEVELOPMENTINDIVIDUAL ACCOUNTINDIVIDUAL ACCOUNTSINDIVIDUAL SAVINGSINSTITUTIONAL INVESTORSINTERNATIONAL FINANCIAL CRISISINVESTMENT BANKSINVESTMENT RETURNSINVESTMENT RISKLABOR FORCELABOR MARKETLIABILITYLIFETIMELIQUIDATIONLOANLOAN MARKETSLONG-TERM PLANNINGLOW INCOMELOW-INCOMELOW-INCOME WORKERSLOWER-INCOME WORKERSMACROECONOMIC RISKSMANDATORY PENSION FUNDSMARK-TO-MARKETMARKET RISKSMARKET VALUATIONMARKET VOLATILITYMATURITYMINIMUM PENSIONMINIMUM PENSIONSMULTI-PILLAR PENSION SYSTEMMULTI-PILLAR PENSION SYSTEMSMULTI-PILLAR SYSTEMMULTIPILLAR SYSTEMSNORMAL RETIREMENT AGEOLDER WORKERSOPPORTUNITY COSTSPAY AS YOU GOPAY AS YOU GO SYSTEMPAY-AS-YOU-GO PENSION SYSTEMSPAY-AS-YOU-GO SYSTEMSPENSIONPENSION BENEFITPENSION BENEFITSPENSION EXPENDITURESPENSION FUNDPENSION FUND ASSETSPENSION FUND RETURNSPENSION FUNDSPENSION LIABILITYPENSION MARKETSPENSION PAYMENTSPENSION REFORMPENSION REFORM PRIMERPENSION SYSTEMPENSION SYSTEMSPENSION WEALTHPENSION-SCHEMEPENSIONSPOLICY RESPONSESPORTFOLIOSPRICE MOVEMENTSPRIVATE PENSIONSPUBLIC INFORMATION CAMPAIGNPUBLIC PENSIONPUBLIC PENSION SCHEMESPUBLIC POLICIESPUBLIC SCHEMESRATE OF RETURNRECESSIONREGULATORSREPLACEMENT RATESRESERVERESERVE FUNDRESERVESRETIREESRETIREMENTRETIREMENT AGERETIREMENT BENEFITRETIREMENT BENEFITSRETIREMENT INCOMERETIREMENT INCOME SYSTEMSRETIREMENT INCOMESRETIREMENT SAVINGSRETIREMENT SYSTEMRETIREMENT SYSTEMSRETIREMENT-INCOMERETIRING WORKERSRISK MANAGEMENTSALARIESSAVINGSSAVINGS ACCOUNTSSOCIAL INSURANCESOCIAL INSURANCE CONTRIBUTIONSSOCIAL INSURANCE SYSTEMSOCIAL PENSIONSOCIAL PENSIONSSUPERVISION OF PENSION FUNDSSUPPORT PROGRAMTRANSPARENCYUNEMPLOYMENTUNFUNDED PENSIONVALUATIONVALUE OF PENSIONWAGEWILLWITHDRAWALThe Financial Crisis and Mandatory Pension Systems in Developing Countries : Short-and Medium-Term Responses for Retirement Income SystemsWorld Bank10.1596/11130