Pension Reforms In Europe Research Articles

Common Factor Cause-Specific Mortality Model

Recent pension reforms in Europe have implemented a link between retirement age and life expectancy. The accurate forecast of life tables and life expectancy is hence paramount for governmental policy and financial institutions. We developed a multi-population mortality model which includes a cause-specific environment using Archimedean copulae to model dependence between various groups of causes of death. For this, Dutch data on cause-of-death mortality and cause-specific mortality data from 14 comparable European countries were used. We find that the inclusion of a common factor to a cause-specific mortality context increases the robustness of the forecast and we underline that cause-specific mortality forecasts foresee a more pessimistic mortality future than general mortality models. Overall, we find that this non-trivial extension is robust to the copula specification for commonly chosen dependence parameters.

Pension Reforms in Europe: How Far Have We Come and Gone?

Pension Reforms in Europe: How Far Have We Come and Gone?

Recent pension reforms in Europe: More challenges, new directions. An overview

AbstractDuring the last 30 years, all European Union member states have reformed their pension systems. In view of ongoing and intensifying population aging, efforts have aimed at containing the future rise of the contribution rate, improving the system dependency ratio, lowering the benefit ratio and/or infusing tax money or other financial resources into the system. Moreover, since about the early 2000s, we can observe a move towards a multi‐pillar pension system in countries hitherto running a dominant‐pillar system: private pre‐funded occupational pensions and individual provision for old age are given larger roles within the public–private mix of retirement income. An analysis of reforms shows a finite menu of adjustment options, and concrete measures have to be adapted to nation‐specific institutional contexts. Finally, we can conclude that pension reforms focusing on long‐term financial sustainability may increase the risk of old‐age poverty and, thus, violate a central objective of pension schemes.

The political economy of pension reforms in Europe under financial stress

AbstractDespite a substantially unchanged problem load in the last 20 years, EU Member States witnessed a recent surge in pension reforms. Since the Great Recession, external market and political pressures started outcompeting national politics in pension-related decisions. Employing European Commission data on major pension reforms during 2006–2015, we find that governments respond to higher risk premia charged by international financial actors. Macro-policy fundamentals, such as budget deficits, and micro-policy indicators, such as pension spending, instead, only signal the necessity to act. They trigger the reforms in the presence of EU conditionality, that is, in the presence of Excessive Deficit Procedures and Country-Specific Recommendations within the European Semester. These findings deepen our understanding of the Europeanization of social policy, contribute to the literature on the political economy of reforms and testify to the declining role of domestic factors in the politics of the welfare state.

REFORMING OF PENSION INSURANCE SYSTEM OF COUNTRIES OF WESTERN EUROPE

Introduction. Investigation of foreign experience of structural pension reform is important for Ukraine. Pension insurance system in Ukraine has not been reformed in time therefore now it should go through all the stages of reforms in short terms. European countries have already passed all these stages. This process has lasted for decades. Investigation of changes in economic thought on the concept of "reform" all over the world in the context of pension insurance and mechanisms of its implementation in Western Europe in the second half of the twentieth century is a prerequisite for effective reform. Purpose. The research aims to investigate the experience of countries of Western Europe as for the structural reform of pension insurance system and its implementation in Ukraine. Results. This article explores the factors that cause structural pension reform in Europe and the possibility of its implementation in Ukraine. The historical stages of emergence and development of retirement insurance in the world have been determined. Two basic models of pension systems have been singled out. Economic thought of leading European scientists as for the pension insurance changes under the influence of time and transformations in the economy have been considered. The reasons of the pension insurance reform in Europe in postwar period have been investigated. The history of the first cumulative programs and the creation of private pension insurance that leaded to a structural reform in the countries of Western Europe have been studied. Different factors that affect the likelihood of structural pension reform in any country and the possibility of such a reform in Ukraine have been investigated.

Demographic Ageing and Pension Reforms in Europe: Problems of Economic, Social and Political Sustainability

Die demografische Alterung gilt als eine der langfristigen Herausforderungen fur die Alterssicherung in Europa, insbesondere fur den Generationenvertrag staatlicher Rentensysteme. In einer vergleichenden makro-soziologischen Analyse werden die demografische Entwicklung, politischen Restriktionen und sozialpolitischen Reformdynamiken in Europa untersucht. Alle europaischen Gesellschaften werden aufgrund demografischer Alterung langfristig Nachhaltigkeitsprobleme der Alterssicherung haben. Trotz zahlreicher Reformen unterscheiden sich die europaischen Sozialstaaten jedoch im Zeitpunkt des Renteneintritts sowie dem Ausmas umlagefinanzierter Alterssicherung. Der Vergleich von zehn europaischen Sozialstaaten zeigt die Unterschiede in der Umkehrung der Fruhverrentung und der Verlagerung auf kapitalgedeckte Altersvorsorge. Neben der finanziellen Nachhaltigkeit verweist der Beitrag jedoch auch auf weitere Nachhaltigkeitsprobleme, insbesondere der sozialen Ungleichheit und politischen Durchsetzbarkeit, die es neben der demografischen Herausforderung zu bewaltigen gilt.

Assessing the sustainability of pension reforms in Europe

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.

Public Pension Reform in Europe and the USA

The reform of pension systems is on the political agenda in most European countries and in the USA. The paper considers the main factors underlying the reform process and examines the reforms introduced in recent years and those currently under discussion in order to trace common features, but also highlight country peculiarities. Pension reform have been characterised by three main lines of action: parametric changes in traditional PAYG public schemes, the introduction of new pension formulas (such as notional funding) in PAYG schemes and the development of funded schemes. All reforms basically aim at guaranteeing adequate living standards to an increasing number of elderly citizens without imposing an excessive cost on taxpayers. Most reforms try to do so by lengthening the working life and by diversifying the sources of income of the elderly. A number of important reforms have been introduced but several problems remain open. The process is frequently slow and tortuous and far from completion in most developed countries. The need to reform pension systems has spurred the development of ad hoc policy solutions, such as bipartisan committees, and new technical tools, such as long-term projections. The reform debate has taken different directions in Europe and the USA. While the US debate is essentially about the role of funding, in Europe it is mostly about the timing and features of changes in the PAYG schemes.

Camila Arza and Martin Kohli (eds.) (2007), Pension Reform in Europe: Politics, Policies and Outcomes. London: Routledge. £60, pp. 221, hbk

Camila Arza and Martin Kohli (eds.) (2007), Pension Reform in Europe: Politics, Policies and Outcomes. London: Routledge. £60, pp. 221, hbk

Aging, Asset Markets, and Asset Returns: A View From Europe to Asia

The extent of the demographic changes is dramatic especially in some Asian and European countries. This paper investigates the effect of aging on global asset markets and asset returns, focusing on markets for productive capital, and especially on interactions between European and Asian economic development. Aging has complex effects on the markets for real capital. If elderly people save less than younger people, interest rates will increase. At the same time, however, the younger generation becomes smaller, which reduces the demand for new investment. The equilibrium effect is thus uncertain. Our multicountry computational equilibrium model delivers a subtle picture: there will be some decline in the return from productive capital, but it is relatively small. We find noticeable interaction effects between labor market and pension reforms in Europe on the one hand, and the demographic and economic developments in Asia, especially India and China, on the other hand.

Reforming Pensions in Europe: Economic Fundamentals and Political Factors

This paper analyzes pension reforms in Europe and their determinants. The author introduces an alternative measure of pension reforms by comparing long-term forecasts of pension expenditures for seventeen European countries. The larger the decrease in expected spending on public pensions in 2050 between two base years, the more successful an pension reform the country achieved (after controlling for other factors, such as demography). The author´s analysis shows that the reform effort varies widely across countries and over time. In the second part of the paper, the author analyzes factors that may facilitate or hamper pension. Only the measure of trade union power proves to be significant in explaining pension reforms. However, specific pension system factors are significant and suggest that European governments do reform their pension systems when faced with the threat of escalating pension expenditures.

Financial market lobbies and pension reform

We develop a model in which firms in the financial market lobby the government to lower compulsory contributions to the public pension system. Firms lobby in order to increase demand from households for their old-age savings products. We conclude with a comparison of two major pension reforms in Europe exemplifying the influence of financial market lobbies on pension policies.

The Rise of Pension Fund Capitalism in Europe: An Unseen Revolution?

The pension funds have become America's new ‘tycoons’ – surely the most unlikely masters any society ever had. They have attained this position without any struggle, any crisis, any major ‘problems...

Pension norms and pension reforms in Europe – the effects on gender pension gaps

Pension levels in the EU15 are significantly gendered. Various reforms to pension systems explicitly aim at improving women's opportunities to build up pension entitlements. These reforms differ from country to country. We see so-called work–life balance policies to increase women's labour market participation by facilitating part-time employment in particular as well as pension entitlements for care periods outside the labour market. At the same time, however, other seemingly gender neutral reforms generally tend to have the opposite effect. These measures include changes in pension calculation norms and pension composition, increasing the importance of non-public pensions. Therefore, future female pensioners will not be significantly better off. However, for women to be better off is necessary in times of pension retrenchments and individualization. Based on recent life-course theories and studies, this article analyses the multiplicity of reasons for gender differentiated pension levels. It shows that the numerous direct and indirect pension determining factors related to life courses and welfare arrangements are interlinked on many fronts. Their cumulative effects finally result in (continued) significant gender gaps. It is argued that there are no quick fixes for reducing the gender gaps in pensions but that this will require attention to the degendering of labour market and the reformulation of life course norms.

Pensions ‐ Edited by Michael Hill and Pension Reform in Europe: Politics, Policies and Outcomes ‐ Edited by Camila Arza and Martin Kohli

Social Policy & AdministrationVolume 42, Issue 3 p. 307-311 Pensions - Edited by Michael Hill and Pension Reform in Europe: Politics, Policies and Outcomes - Edited by Camila Arza and Martin Kohli Mark Hyde, Mark HydeSearch for more papers by this authorJohn Dixon, John DixonSearch for more papers by this author Mark Hyde, Mark HydeSearch for more papers by this authorJohn Dixon, John DixonSearch for more papers by this author First published: 01 May 2008 https://doi.org/10.1111/j.1467-9515.2008.00604_1.xRead the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Volume42, Issue3June 2008Pages 307-311 RelatedInformation

Pension Reforms in Europe and Life‐course Politics

AbstractIn recent years, somewhat drastic pension reforms have taken place in all European countries. The pension systems developed in the last century are no longer considered to be suited to the changing demographic constellations in European countries, and the financial sustainability of these systems is under threat. Moreover, the changing political and economic set‐up in European countries is also used to justify reforming the different pension systems. Different reasons can be given to explain the various pension reform measures without, however, there being any integrated coherence. We suggest that a politics of social policy, and of pension policy in particular, based on a life‐course perspective, facilitates the understanding of the whole range of pension reform measures. In the past, the elaborated pension systems were attuned to a normative standard biography. A new standard biography, with different phases and more transitions and combinations, enables one to understand the variety of the ongoing pension reform measures. Such a life‐course perspective integrates sequences of learning, working and caring considered necessary for the polity. In other words, it is based on a conception of human potential, and it integrates, to some extent, the previously separate domains of labour market policy, education policy, care policy and pension policy. However, recent theoretical and empirical studies of the life course lead to a critical evaluation of the new standard biography, with the conclusion that the new standard is one‐sided and scientifically unsound, entailing challenges for social policy.

Pension reforms in Europe: An investigation with a computable OLG world model

This paper presents and briefly discusses the INGENUE model, an international computable overlapping-generations model of the world economy. After a short description of the major features of the baseline scenario of the model for the world economy over the next century, we systematically explore the domestic and international macroeconomic consequences of three scenarios of pension reforms in Europe, as well as their intergenerational distributional effects. We then compare the outcomes in the INGENUE model with those obtained in similar models where Europe is treated either in autarky or as a small, open economy.

Pension Reform in Europe

Pension Reform in Europe

The Distributional Aspects of Social Security and Social Security Reform. . Social Security Pension Reform in Europe

The Distributional Aspects of Social Security and Social Security Reform. . Social Security Pension Reform in Europe

Public Pension Reform in Europe: Policies, Prospects and Evaluation

This paper describes the demographic and economic factors underlying the reform of public pension programmes in Europe. It examines the policy response, both at the Europe‐wide level and within individual European countries. Several programme reform strategies that have been implemented are evaluated. These strategies are the greater pre‐funding of public pensions and expanded second‐tier private pension components, ‘parametric’ reforms to existing programmes, and the development of formula‐driven ‘actuarially fair’ public programmes. Efforts to provide greater incentives for individuals to postpone retirement are also discussed.