Sustainability of Pension Systems in the New EU member States and Croatia : Coping with Aging Challenges and Fiscal Pressures

This report concerns recent pension reforms in Europe. Over the last decade, pension reform has been a major issue on the political agenda across Europe. All European countries are profoundly affected by aging populations resulting from lower fertility and increased life expectancy. In order to make pension systems more sustainable in light of prospective demographic developments, and in some cases to address current financing problems, EU10+1countries have been reforming their pension systems since the mid-1990s. The reforms have combined measures to delay retirement, link benefits more closely to contributions, and diversify risk. Three major forces drive the ageing process: increasing life expectancy, low fertility rates, and finally the baby-boom generation reaching retirement age. All these factors, even in countries where the system is currently fiscally balanced, will produce a major financial challenge for pension systems over the coming decades when the number of pensioners will rapidly increase and the size of the working-age population diminish. This report conclude that some countries (in particular, the Czech Republic, Slovenia, and Romania) will need to do more to safeguard the long-term viability of their pension systems, and others face ongoing and future challenges in ensuring equitable pension systems and adequate living standards for all elderly people.

Bibliographic Details

Main Authors:	Kąsek, Leszek, Laursen, Thomas, Skrok, Emilia
Language:	English en_US
Published:	Washington, DC : World Bank 2008
Subjects:	ACCRUAL RATES, ADMINISTRATIVE CHARGES, AGING POPULATIONS, ANNUITY, ASSET ALLOCATION, ASSET ALLOCATIONS, ASSET MANAGEMENT, ASSET VALUE, AVERAGE BENEFIT, AVERAGE BENEFITS, AVERAGE EARNINGS, AVERAGE PENSION, AVERAGE WAGE, BASIC PENSION, BASIC PENSIONS, BENEFIT FORMULA, BENEFIT FORMULAS, BENEFIT LEVELS, BENEFIT RATES, BONDS, BOOM GENERATION, BORROWING, CALCULATIONS, CAPITAL MARKET, CAPITAL MARKET DEVELOPMENT, CONSUMER, CONTRIBUTION, CONTRIBUTION BASE, CONTRIBUTION BASES, CONTRIBUTION PERIODS, CONTRIBUTION RATE, CONTRIBUTION RATES, CONTRIBUTIONS, COPYRIGHT CLEARANCE, COPYRIGHT CLEARANCE CENTER, CURRENT PENSION, CURRENT PENSIONERS, DEBT, DEBT SECURITIES, DEFINED BENEFIT, DEMOGRAPHIC, DEMOGRAPHIC CHANGES, DEPENDENCY RATIO, DEPENDENCY RATIOS, DEPOSITS, DISABILITY, DISABILITY INSURANCE, DISABILITY PENSIONS, DIVERSIFICATION, DOMESTIC ECONOMIES, EARLY RETIREMENT, EARLY RETIREMENT PRIVILEGES, EARNINGS, EARNINGS HISTORY, EARNINGS INDEXATION, EARNINGS MEASURES, ECONOMIC MANAGEMENT, ELDERLY, EMPLOYEE, ENVIRONMENTAL BENEFITS, EQUITIES, FERTILITY, FERTILITY RATES, FINANCES, FINANCIAL BENEFITS, FINANCIAL INSTRUMENTS, FINANCIAL MARKET, FINANCIAL SITUATION, FISCAL CONSOLIDATION, FOREIGN INVESTMENT, FUND ASSETS, FUND MANAGERS, FUND PERFORMANCE, FUNDED ACCOUNT, GOVERNMENT BONDS, GOVERNMENT SECURITIES, GROWTH RATE, GROWTH RATES, HEALTH INSURANCE, HEALTH INSURANCE FUND, INCOME, INCOME LEVEL, INCOME LEVELS, INCOME SOURCE, INCOMES, INDIVIDUAL ACCOUNT, INDIVIDUAL SAVINGS, INFLATION, INFLATION INDEXATION, INFLATION RATE, INFORMAL SECTOR, INFORMATION ON PENSION, INSURANCE COMPANY, INSURANCE SCHEME, INTEREST RATE, INTERNATIONAL BANK, INVESTMENT OPPORTUNITIES, INVESTMENT PORTFOLIO, INVESTMENT RATES, INVESTMENT RISK, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LIFE EXPECTANCIES, LIFE EXPECTANCY, LIFETIME, LIVING STANDARDS, MARKET PARTICIPANTS, MARKET RISK, MINIMUM CONTRIBUTION, MINIMUM PENSION, MINIMUM PERIOD, MINIMUM WAGE, MORTALITY, NATIONAL ECONOMY, NATURAL RESOURCES, NET ASSET, NORMAL RETIREMENT AGE, NORMAL RETIREMENT AGES, OCCUPATIONAL PENSION, OLD-AGE PENSION, OLD-AGE PENSIONERS, OLD-AGE PENSIONS, OLDER WORKERS, PENSION, PENSION AGE, PENSION BENEFIT, PENSION COMPANIES, PENSION CONTRIBUTION, PENSION CONTRIBUTIONS, PENSION ENTITLEMENT, PENSION ENTITLEMENTS, PENSION EXPENDITURE, PENSION EXPENDITURES, PENSION FUND, PENSION FUND ASSETS, PENSION INSURANCE, PENSION LAW, PENSION PLANS, PENSION PROVISION, PENSION REFORM, PENSION REFORMS, PENSION SAVINGS, PENSION SCHEME, PENSION SCHEMES, PENSION SECURITY, PENSION SPENDING, PENSION SYSTEM, PENSION SYSTEM REFORMS, PENSION SYSTEMS, PENSIONABLE AGE, PENSIONS, POLITICAL RISK, POPULATION AGEING, PORTFOLIO MANAGERS, PRESENT VALUE, PRIVATE EQUITIES, PRIVATE PENSION, PRIVATE PENSION FUND, PRIVATE PENSION FUNDS, PRIVATE SAVINGS, PRIVATIZATION, PROBABILITY, PRODUCTIVITY, PUBLIC DEBT, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC PENSION, PUBLIC PENSIONS, PUBLIC SYSTEM, RAPID ECONOMIC GROWTH, RATE OF RETURN, RATES OF RETURN, RATES OF RETURNS, REPLACEMENT RATE, REPLACEMENT RATES, RETIRED, RETIREES, RETIREMENT, RETIREMENT AGE, RETIREMENT AGES, RETIREMENT BENEFITS, RETIREMENT ELIGIBILITY, RETIREMENT PENSIONS, RETIREMENT-INCOME, RISK DIVERSIFICATION, SALARY, SECOND PENSION, SECURITIES, SHARE OF EARNINGS, SOCIAL CONTRIBUTION, SOCIAL CONTRIBUTIONS, SOCIAL INSURANCE, SOCIAL INSURANCE AGENCIES, SOCIAL INSURANCE FUND, SOCIAL PROTECTION, SOCIAL SECURITY, SOCIAL SECURITY CONTRIBUTIONS, STATE PENSION, SUPPLEMENTARY PENSION, TAX, TAXABLE INCOME, TRADE UNIONS, TRANSACTION, TRANSACTION COSTS, TYPE OF WORK, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNEMPLOYMENT RATES, VALUABLE, VALUE OF MONEY, WAGE GROWTH, WAGES, WITHDRAWAL, WORKING AGE, WORKING AGE POPULATION, WORKING PENSIONERS, YEARS OF SERVICE, YOUNGER PEOPLE, YOUNGER WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2008/01/9015310/sustainability-pension-systems-new-eu-member-states-croatia-coping-aging-challenges-fiscal-pressures https://hdl.handle.net/10986/6358
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