The Reform of Bismarckian Pension Systems

The Reform of Bismarckian Pension Systems
Amsterdam University Press | July 1, 2005 | ISBN-10: 9053567402 | 320 pages | File type: PDF | 1.7 mb

Pension reform has emerged as a major political issue in most advanced welfare states. Sluggish economic growth and rising unemployment put public pension systems under increasing financial pressure. In combination with a rapidly ageing population in the decades to come, these pressures render major adjustements in pension policy design inevitable, especially in countries with costly earnings-related benefit arrangements. However, timely and successful adjustement is anything but guaranteed. Both cuts of pension benefits and increases in contribution levels are bound to be highly unpopular and entail massive political risks. Thus, pension politics these days is as much about adjusting pension arrangements to changing demographic and economic conditions as it is about overcoming widespread political resistance to reforms that impose tangible losses on large parts of the population.

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