The Role of Complementary Pensions

Mercedes Ayuso (), Montserrat Guillen and Diego Valero ()
Additional contact information
Mercedes Ayuso: Riskcenter, Department of Econometrics, University of Barcelona
Montserrat Guillen: Riskcenter, Department of Econometrics, University of Barcelona
Diego Valero: University of Barcelona

Chapter Chapter 16 in Economic Challenges of Pension Systems, 2020, pp 359-375 from Springer

Abstract: Abstract Recent reforms of public pension systems implemented in various countries, including Spain, have sought to ensure the sustainability of benefits. However, achieving a structural budget balance (i.e. long-run equality between income and expenditure) may result in a decrease in the replacement rate or in the percentage that the pension represents of the last salary. The development of complementary pension schemes, both occupational and personal, is presented as a feasible alternative for increasing the adequacy of benefits. However, both systems face significant challenges in their further implementation, with business structures, on occasions, being highly concentrated in small and medium enterprises and under the significant influence of longevity, inflation and interest rate risks. This chapter presents a comprehensive analysis of the possibilities offered by the second and the third pillars to complement public pension systems and their possible innovations for increasing their level of penetration in different countries.

Keywords: Sufficiency; Notional defined contribution; Occupational pension schemes; Individual pension schemes; Defined contribution schemes; Defined benefit schemes; Defined ambition schemes; Behavioural economics (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-37912-4_16

Ordering information: This item can be ordered from
http://www.springer.com/9783030379124

DOI: 10.1007/978-3-030-37912-4_16

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().