Abstracts » Business, international

The great pension debate

Article Abstract:

Britain's July 17, 1997 decision to have a fundamental review of its pension provision plan has incited controversy. The review is likely to focus on ways to make the pension program much less dependent upon state financing, probably by encouraging individuals to prepare for their retirement through private investment. Part of the issue for government is improving the regulatory policies it uses to oversee private pensions. But no amount of regulation will get short-term thinkers to invest wisely over the long term, so the government is looking into enforced private pension payments.

United Kingdom, Social policy

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Latin lessons on pensions

Article Abstract:

Latin American pension reform is an example of a move to privatized individual pensions and away from state schemes. Richer countries are tending to delay coming to terms with the demographic issues involved whiuch mean that there are problems in funding state schemes. Reforms have proved popular and funds have brought good returns. Financial markets have also developed more in countries with the new schemes. Operating costs have been high, but there has been an attempt to cut these by limiting transfers.

Latin America

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Retiring the state pension

Article Abstract:

Private pensions could increase savings rates, allow for bigger pensions, and help solve problems linked to an ageing population. There are risks involved from a stock price crash, providers going bankrupt, and contracts cannot be enforced if they involve generations yet to be born. People may also not save enough for their retirement. Not everyone can afford to pay into a pension scheme, but the government can make payments compulsory so that those who can afford to save do so.

Administration of Human Resource Programs (except Education, Public Health, and Veterans' Affairs Programs), Old Age & Survivors Insurance

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