Sweden should establish an independent committee of experts to oversee its National Pension Funds and set a clear, measurable financial objective for investments to ensure their long-term viability, according to a new OECD report.
The Working Paper “The Role of Guarantees in Defined Contribution Pensions” argues that, while there is a clear need to better protect retirement income from financial market volatility, the costs and benefits of investment return guarantees should be carefully evaluated.
Pension fund asset levels in most countries continued to show strong growth throughout 2010, returning almost to pre-crisis levels, according to a new OECD report. Both economic and financial indicators showed signs of further recovery but the outlook for future economic growth in developed economies remains uncertain and sluggish.
Some countries are reconsidering their approach to the provision of sustainable and adequate pensions. OECD experts have reiterated several key recommendations that should be taken into account during this process.
Working Paper: "Assessing Default Investment Strategies in Defined Contribution Pension Plans". Future retirees can expect dramatic fluctuations in fortunes between members of a cohort unless they adopt investment strategies that reduce the impact of market shocks. Similar strategies should also become the default for individuals who make no active investment choice.
The Spanish government announced on Friday, 29 January, its intention of postponing the retirement age from 65 to 67 and to increase the number of contribution years used to calculate pension benefits. The OECD believes that these measures are important steps in the right direction and would bring Spain closer in line with other OECD countries who have already reformed their pension systems.
El gobierno español anunció el viernes pasado su intención de elevar la edad oficial de jubilación de 65 a 67 años, y de aumentar el numero de años necesario para calcular la pensión. La OCDE considera muy positivas dichas medidas.
The Journal of Pension Economics and Finance (JPEF), the only academic journal focusing on the economics and finance of pensions and retirement income programs, announces a new editorial structure and a broadening of its mission effective January 2010. Since 2002, the JPEF has provided an invaluable and influential forum for original research and international policy debate in the pensions area.
The OECD and the World Bank - at the occasion of the OECD/IOPS Global Forum on Private Pensions, held in Rio de Janeiro, Brazil - today announced the preliminary results of their project evaluating the financial performance of pension funds around the world.
The current financial crisis has had a major impact on global pension assets, with the OECD estimating declines of $5.4tn (over 20%) at the end of 2008. This is putting pressure on funding levels for defined benefit (DB) pension plans, and has served a severe blow to members of defined contribution (DC) plans close to retirement, denting confidence in many DC systems. This paper discusses responses to current financial and economic