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

The 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.

Bibliographic Details

Main Authors:	Dorfman, Mark, Hinz, Richard, Robalino, David
Language:	English
Published:	World Bank, Washington, DC 2008-12
Subjects:	ACCESS TO BANK, ACCESS TO BANK LOANS, ACCRUAL RATE, ADDITIONAL FINANCING, AGING POPULATIONS, ANNUAL RETURN, ANNUITIES, ANNUITY, ANNUITY PURCHASE, ASSET ALLOCATIONS, ASSET PRICES, ASSET VALUES, AVERAGE EARNINGS, AVERAGE PENSION, BANK LOANS, BANKING SYSTEM, BANKS, BASIC PENSION, BENEFIT FORMULAS, BONDS, CALCULATION, CALCULATIONS, CASH BALANCES, CASH FLOW, CLIENT COUNTRIES, COMPENSATION, CONTRIBUTION, CONTRIBUTION RATE, CONTRIBUTION RATES, CONTRIBUTION SCHEMES, CONTRIBUTIONS, CURRENT EXPENDITURES, DEBT, DEBT FINANCING, DEFINED CONTRIBUTION PENSIONS, DEFINED-BENEFIT PENSION, DEFINED-CONTRIBUTION PENSIONS, DEMOGRAPHIC, DEVELOPING COUNTRIES, DISABILITY, DISABILITY BENEFITS, DIVERSIFICATION, DIVERSIFIED PORTFOLIO, EARLY RETIREMENT, EARNINGS, ECONOMIC DEVELOPMENTS, ECONOMIC DOWNTURN, ECONOMIC SHOCKS, ECONOMIC VOLATILITY, ELDERLY, EMPLOYEE, ENTERPRISE FINANCING, EXPOSURE, EXTERNAL DEBT, FINANCIAL ASSETS, FINANCIAL CRISIS, FINANCIAL FLOWS, FINANCIAL IMPACT, FINANCIAL INSTITUTIONS, FINANCIAL ISSUES, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL RISKS, FINANCIAL SECTOR, FINANCIAL SITUATION, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCIAL VOLATILITY, FISCAL DEFICITS, FORMAL PENSION, FORMAL PENSION SYSTEM, FULL-CAREER WORKERS, FUND ASSETS, FUNDED ACCOUNT, FUNDED PENSIONS, FUNDED SCHEME, FUNDED SCHEMES, FUNDED SYSTEMS, GOVERNANCE STANDARDS, GOVERNMENT DEBT, GROWTH RATE, GUARANTEED BENEFIT, HUMAN DEVELOPMENT, INDIVIDUAL ACCOUNT, INDIVIDUAL ACCOUNTS, INDIVIDUAL SAVINGS, INSTITUTIONAL INVESTORS, INTERNATIONAL FINANCIAL CRISIS, INVESTMENT BANKS, INVESTMENT RETURNS, INVESTMENT RISK, LABOR FORCE, LABOR MARKET, LIABILITY, LIFETIME, LIQUIDATION, LOAN, LOAN MARKETS, LONG-TERM PLANNING, LOW INCOME, LOW-INCOME, LOW-INCOME WORKERS, LOWER-INCOME WORKERS, MACROECONOMIC RISKS, MANDATORY PENSION FUNDS, MARK-TO-MARKET, MARKET RISKS, MARKET VALUATION, MARKET VOLATILITY, MATURITY, MINIMUM PENSION, MINIMUM PENSIONS, MULTI-PILLAR PENSION SYSTEM, MULTI-PILLAR PENSION SYSTEMS, MULTI-PILLAR SYSTEM, MULTIPILLAR SYSTEMS, NORMAL RETIREMENT AGE, OLDER WORKERS, OPPORTUNITY COSTS, PAY AS YOU GO, PAY AS YOU GO SYSTEM, PAY-AS-YOU-GO PENSION SYSTEMS, PAY-AS-YOU-GO SYSTEMS, PENSION, PENSION BENEFIT, PENSION BENEFITS, PENSION EXPENDITURES, PENSION FUND, PENSION FUND ASSETS, PENSION FUND RETURNS, PENSION FUNDS, PENSION LIABILITY, PENSION MARKETS, PENSION PAYMENTS, PENSION REFORM, PENSION REFORM PRIMER, PENSION SYSTEM, PENSION SYSTEMS, PENSION WEALTH, PENSION-SCHEME, PENSIONS, POLICY RESPONSES, PORTFOLIOS, PRICE MOVEMENTS, PRIVATE PENSIONS, PUBLIC INFORMATION CAMPAIGN, PUBLIC PENSION, PUBLIC PENSION SCHEMES, PUBLIC POLICIES, PUBLIC SCHEMES, RATE OF RETURN, RECESSION, REGULATORS, REPLACEMENT RATES, RESERVE, RESERVE FUND, RESERVES, RETIREES, RETIREMENT, RETIREMENT AGE, RETIREMENT BENEFIT, RETIREMENT BENEFITS, RETIREMENT INCOME, RETIREMENT INCOME SYSTEMS, RETIREMENT INCOMES, RETIREMENT SAVINGS, RETIREMENT SYSTEM, RETIREMENT SYSTEMS, RETIREMENT-INCOME, RETIRING WORKERS, RISK MANAGEMENT, SALARIES, SAVINGS, SAVINGS ACCOUNTS, SOCIAL INSURANCE, SOCIAL INSURANCE CONTRIBUTIONS, SOCIAL INSURANCE SYSTEM, SOCIAL PENSION, SOCIAL PENSIONS, SUPERVISION OF PENSION FUNDS, SUPPORT PROGRAM, TRANSPARENCY, UNEMPLOYMENT, UNFUNDED PENSION, VALUATION, VALUE OF PENSION, WAGE, WILL, WITHDRAWAL,
Online Access:	http://documents.worldbank.org/curated/en/2008/12/10106891/financial-crisis-mandatory-pension-systems-developing-countries-short-and-medium-term-responses-retirement-income-systems https://hdl.handle.net/10986/11130
Tags:	Add Tag No Tags, Be the first to tag this record!