OECD Pensions Outlook 2014
Pension systems are facing crucial and far-reaching challenges. The economic crisis led to a reduction in governments’ revenues to finance retirement promises and to a loss of public confidence in private pensions in many countries. At the same time, pension systems also have to deal with the problems posed by population ageing and the current economic environment.
Pensions are under pressure from the retiring of the baby boom generations, the improvements in mortality and life expectancy, and the longevity risk coming from the uncertainty around future improvements in life expectancy. Population ageing is leading not only to an increase in the number of people in retirement relative to the size of the working age population, but also most importantly to an increase in the number of years that people spend in retirement. While living longer and healthier lives is fundamentally good news, population ageing challenges the financial sustainability, solvency and adequacy of pension systems.
- OECD Pensions Outlook 2014