Crisis highlights the need for reforms
23 June 2009
Written by Rosie Horsley
The Organisation for Economic and Co-Operative Development (OECD) has called for governments worldwide to push ahead with reforms to ensure that public and private income provision remains socially and financially sustainable.
In the current economy, OECD governments face funding deficits of up to nine per cent of national income, therefore erasing the option of more generous public pensions.
It is not just the public pensions that have been affected; pensions in the private sector have suffered from plummeting stock markets, and the report states that they must reassess the way they operate to become better regulated. More efficient administration, clearer information about possible risks and options of rewards along with an automatic switch to more dependable investments as members near retirement are some of the recommendations made by the OECD.
“Reforming pension systems now, to make them both affordable and strong enough to provide protection against market swings, citizens will save governments a lot of financial and political pain in the future,” said OECD secretary-general Angel Gurría.
Pensions at Glance 2009 also includes articles on
the income and living standards of the elderly, recent pension reforms
and articles on private pension schemes along with comparisons of the
national pension systems of 30 OECD countries.
The report can be accessed here.
