03/12/2018 - Improvements in the design of pension systems over the last decade in OECD countries have made them more financially sustainable and governments should now focus on ensuring they provide people with an adequate retirement income, according to a new OECD report.
The OECD Pensions Outlook 2018 says that governments face challenges including population ageing, low returns on retirement savings, low growth, less stable employment careers and insufficient pension coverage among some groups of workers. These issues have eroded the belief that pension systems, pay-as-you-go or funded, will deliver on their promises once workers reach retirement age.
“Pension reform remains a continuing challenge as countries need to ensure people get an adequate pension while remaining affordable,” said OECD Secretary-General Angel Gurría, launching the report in Paris.
Many countries have introduced automatic mechanisms to adjust pension benefits to economic and demographic developments, as well as default options to help people that do not want to or cannot make choices. Countries have also taken measures to strengthen safety nets to prevent old-age poverty, says the report.
Regulators and policy makers have also taken steps to make regulatory and supervisory frameworks for funded pension arrangements more robust to make sure they manage people’s savings in their best interest.
Report main messages
For more information on the OECD Pensions Outlook 2018, please visit: http://www.oecd.org/pensions/oecd-pensions-outlook.htm.
Journalists are invited to contact the OECD's Media Division (tel: +33 1 4524 97 00).
Working with over 100 countries, the OECD is a global policy forum that promotes policies to improve the economic and social well-being of people around the world.