Reforming pensions in Europe. Evolution of pension financing and sources of retirement income

Abstract:

The changing nature of the demographic pattern of European countries places an almost impossible strain on traditional pay-as-you-go public pensions. This work explores the complexity of pension provision and reform and warns of the dangers of focusing on one particular model.

The work is organised in three parts. Following an introductory chapter, part one concentrates on recent pension reforms in Europe. Chapter two examines the German experience and the shift away from the dominant public component towards a public-private mix. The UK story is told in chapter three which looks at the move towards a state:private sector mix of 40:60. The privatisation process in Hungary is covered in chapter four, and chapter five assesses the pension reforms in Italy. The consequences of the move away from pay-as-you-go systems in the European Union are explored in chapter six which opens part two. Chapter seven looks at sources of income for retired persons using data from Household Budget Surveys in Ireland. The impact of tax benefits to subsidise occupational pension schemes is examined in chapter eight. The French universal pension system, which pays pensions proportional to lifetime earnings from paid employment, is studied in chapter nine. The German introduction of state subsidised private and company pension plans, and the probable anomalies of gender inequality arising from that policy shift, are examined in chapter ten. Gender equality issues are also explored through the Swedish system in chapter eleven. The equity of interests between the generations in pension provision is examined in chapter twelve, and in the final chapter pension policies developed to increase coverage of occupational and private pensions are examined.

The work will interest academics, economists, policy makers, and government agencies concerned with reforms of pension provision.

Gerard Hughes is a Research Professor at the Economic and Social Research Institute, Dublin, Ireland. Jim Stewart is a Senior Lecturer in Finance at Trinity College, Dublin.