Recent social security reform has significantly improved the long-run sustainability of the pension system. However, the pension system continues to serve as an important barrier to a more rapid expansion of the formalsector economy in two ways. First, early-retirement incentives (including...

The pensionable age is the most visible parameter of retirement-income systems. This paper surveys pensionable ages in the OECD for a period of a century: back to 1950 and forward to 2050. Average pensionable age in OECD countries dropped by nearly two years during the second half of the 20th...

This paper compares notional defined-contribution pension schemes (also known as notional accounts) with two alternative designs of earnings-related pension schemes: points systems and definedbenefit plans. It examines, in detail, four economic advantages of notional accounts that deliver...

The current financial and economic crisis has highlighted the importance of investment risk for pension systems. In particular, the dramatic spread of defined-contribution pension provision around the world means that investment risk has a direct effect on living standards in old age. This paper...

Two-thirds of pension reforms in OECD countries in the last 15 years contain measures that will automatically link future pensions to changes in life expectancy. This quiet revolution in pension policy means that the financial costs of longer lives will be shared between generations subject to a...

1. Reforming pensions looms large over the policy agenda of OECD countries. This is hardly surprising since public spending on pensions accounted on average for 7 per cent of OECD GDP in 2005; and this pension spending effort is set to increase significantly over the coming decades in response to...

The current generation of workers can expect lower pension benefits in retirement than the current generation of pensioners. Private, voluntary pension savings will therefore play a greater role in providing for old age. This paper calculates the size of the “pension gap”: the difference...

Most countries give income-tax concessions to older people relative to people of working age. Some treat pension income more favourably than earnings, and most do not levy social security contributions on older people. These policies mean that the direct tax burden of older people is lower than...

Pension systems are complex and comparing them across countries is therefore difficult. This paper adopts standard methodology to calculate prospective pension entitlements in nine countries. The modeling ncludes universal and resource-tested schemes, public and private earnings-related plans...

The analyses included in the report show that there are big socio-economic differences in mortality, especially for men, and they appear to have become bigger over time. The report discusses implications of mortality differentials for five major areas of pension policy: the progressivity of the...