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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Adequacy of Retirement Income after Pension Reforms in Central, Eastern and Southern Europe: Eight Country Studies

Adequacy of Retirement Income after Pension Reforms in Central, Eastern and Southern Europe: Eight Country Studies

Guven, Ufuk
Holzmann, Robert

Paperback

Series: Directions in Development - Finance

Personal FinanceGeneral Political ScienceSocial Movements

ISBN10: 0821377817
ISBN13: 9780821377819
Publisher: World Bank Publications
Published: Mar 20 2009
Pages: 384
Weight: 1.15
Height: 0.80 Width: 6.00 Depth: 8.90
Language: English
The former transition countries of Central, Eastern, and Southern Europe (CESE) inherited defined benefit public pension systems financed on a pay-as-you-go basis. Under central planning, these systems exhibited fiscal strains which worsened during the early years of the transition and became unsustainable under a market economy and projected population aging. All CESE countries introduced reforms that varied but typically focused on issues of sustainability rather than benefit adequacy. Nine case studies-Bulgaria, Czech Republic, Croatia, Hungary, Poland, Romania, Slovakia, Slovenia, and Serbia-suggest the following broad policy conclusions: (i) fiscal sustainability has improved in most study countries, but few are fully prepared for the inevitability of population aging; (ii) the linkage between contributions and benefits has been strengthened, and pension system designs are better suited to market conditions; (iii) levels of income replacement are generally adequate for all but some categories of workers (including those with intermittent formal sector employment or low lifetime wages); (iv) further reforms to cope with population aging should focus on extending labor force participation by the elderly to avoid benefit cuts that could undermine adequacy and very high contribution rates that could discourage formal sector employment; and (v) more decisive financial market reforms are needed for funded provisions to deliver on the return expectations of participants.

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