Reforming Pensions: Myths, Truths, and Policy Choices

N. Barr

No 2000/139, IMF Working Papers from International Monetary Fund

Abstract: This paper discusses the strategic building blocks of pension reform. The early sections set out the simple economics of pensions and discuss a series of myths which have proved remarkably persistent. Subsequent sections draw together the conclusions for policy design from earlier theoretical discussion, set out the prerequisites which any pension reform must respect, and discuss the range of choices facing policymakers. The main conclusions are threefold: the key variable is effective government; from an economic perspective the difference between PAYG and funding is second order; and the range of potential choice over pension design is wide.

Keywords: WP; net present value; PAYG scheme; rate of return; public spending; interest rate; private sector; Pensions; funding; Pay-As-You-Go; demographic change; U.K. government actuary; PAYG pension; retirement age; government-operated fund; excess demand; state scheme; Pension spending; Aging; Retirement; Global (search for similar items in EconPapers)
Pages: 56
Date: 2000-08-01
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Citations: View citations in EconPapers (62)

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