Pensions in Crisis : Europe and Central Asia Regional Policy Note
The financial crisis has significantly impacted pension systems in the Europe and Central Asia region (ECA) tempting governments to make policy changes in response to the increased pension deficits they are facing. The crisis exacerbates the existi...
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| Format: | Policy Note |
| Language: | English en_US |
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Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2009/11/13246000/pensions-crisis-europe-central-asia-regional-policy-note http://hdl.handle.net/10986/18728 |
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okr-10986-18728 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGING POPULATION AGING POPULATIONS ASSET PRICES ASSET VALUES AVERAGE WAGE GROWTH BASIC PENSION BENEFICIARIES BENEFIT LEVELS BOND MARKET CAPITAL GAINS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT COLLECTIVE INVESTMENT COMPENSATION CONSUMER PRICE INDEX CONTRIBUTION RATE CONTRIBUTION RATES COPYRIGHT CLEARANCE COPYRIGHT CLEARANCE CENTER DEFICITS DEMOGRAPHIC DEVELOPING COUNTRIES DISABILITY DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET EARLY RETIREMENT PENSIONS ECONOMIC CRISIS ELDERLY EMPLOYEE EMPLOYMENT EQUITIES EU EXPENDITURE EXPENDITURES FINANCIAL ASSET FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL INFRASTRUCTURE FINANCIAL INSTRUMENTS FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FISCAL POLICY FIXED INCOME FOREIGN FINANCING FUND MANAGEMENT FUND MANAGERS FUNDED PENSION SYSTEMS FUNDED PENSIONS FUNDED SYSTEMS FUTURE PENSION FUTURE PENSIONS GOVERNMENT BONDS GOVERNMENT FINANCES GROSS DOMESTIC PRODUCT GROSS WAGE HUMAN DEVELOPMENT ILLIQUIDITY INCOME GROWTH INCOME INSTRUMENTS INCOMES INDEXED ANNUITIES INDEXED BOND INDEXED BONDS INDIVIDUAL ACCOUNT INFLATION INFLATION INDEXATION INSURANCE INSURANCE COMPANIES INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE INTERNATIONAL PORTFOLIO INVESTING INVESTMENT OPTIONS INVESTMENT REGULATION INVESTMENT STRATEGY ISSUANCE JUDGE LABOR COSTS LABOR MARKET LEGAL STATUS LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LITERACY LONG TERM SAVINGS MARK TO MARKET MARKET DEVELOPMENT MARKET SIZE MONETARY FUND MULTIPILLAR SYSTEM NEW ENTRANTS NOMINAL WAGES NOTIONAL ACCOUNT NOTIONAL ACCOUNTS OFFSHORE MARKETS OPPORTUNISTIC BEHAVIOR OUTPUT PAY AS YOU GO PENALTIES PENSION PENSION BENEFITS PENSION CONTRIBUTION PENSION CONTRIBUTIONS PENSION EXPENDITURES PENSION FINANCING PENSION FUND PENSION FUND MANAGEMENT PENSION FUND MANAGERS PENSION FUNDS PENSION REFORM PENSION REFORMS PENSION REGIMES PENSION SCHEME PENSION SCHEMES PENSION SYSTEM PENSION SYSTEMS PENSIONERS PENSIONS PERFORMANCE MEASURES PILLAR BENEFITS PILLAR SYSTEMS POLICY RESPONSES PORTFOLIO PORTFOLIO ALLOCATIONS PORTFOLIO DIVERSIFICATION PORTFOLIOS PRICE INDEXATION PRIVATE PENSIONS PUBLIC PENSION PUBLIC PENSIONS PUBLIC SYSTEM PURCHASING POWER RATE OF RETURN RATES OF RETURN REGULATORY RESTRICTIONS REPLACEMENT RATES RETIREES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT INCOME RETIREMENT INCOME SYSTEMS RETIREMENT PENSION RETIREMENT SAVINGS RETURNS RISK TAKING SAVINGS ACCOUNTS SECURITIES SOCIAL PROTECTION SUBSIDIARY TAX TRANSFERABLE SECURITIES UNFUNDED PENSION VALUATION VICTIMS VOLATILITY WAGE GROWTH WAGE INDEXING WILL |
| spellingShingle |
AGING POPULATION AGING POPULATIONS ASSET PRICES ASSET VALUES AVERAGE WAGE GROWTH BASIC PENSION BENEFICIARIES BENEFIT LEVELS BOND MARKET CAPITAL GAINS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT COLLECTIVE INVESTMENT COMPENSATION CONSUMER PRICE INDEX CONTRIBUTION RATE CONTRIBUTION RATES COPYRIGHT CLEARANCE COPYRIGHT CLEARANCE CENTER DEFICITS DEMOGRAPHIC DEVELOPING COUNTRIES DISABILITY DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET EARLY RETIREMENT PENSIONS ECONOMIC CRISIS ELDERLY EMPLOYEE EMPLOYMENT EQUITIES EU EXPENDITURE EXPENDITURES FINANCIAL ASSET FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL INFRASTRUCTURE FINANCIAL INSTRUMENTS FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FISCAL POLICY FIXED INCOME FOREIGN FINANCING FUND MANAGEMENT FUND MANAGERS FUNDED PENSION SYSTEMS FUNDED PENSIONS FUNDED SYSTEMS FUTURE PENSION FUTURE PENSIONS GOVERNMENT BONDS GOVERNMENT FINANCES GROSS DOMESTIC PRODUCT GROSS WAGE HUMAN DEVELOPMENT ILLIQUIDITY INCOME GROWTH INCOME INSTRUMENTS INCOMES INDEXED ANNUITIES INDEXED BOND INDEXED BONDS INDIVIDUAL ACCOUNT INFLATION INFLATION INDEXATION INSURANCE INSURANCE COMPANIES INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE INTERNATIONAL PORTFOLIO INVESTING INVESTMENT OPTIONS INVESTMENT REGULATION INVESTMENT STRATEGY ISSUANCE JUDGE LABOR COSTS LABOR MARKET LEGAL STATUS LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LITERACY LONG TERM SAVINGS MARK TO MARKET MARKET DEVELOPMENT MARKET SIZE MONETARY FUND MULTIPILLAR SYSTEM NEW ENTRANTS NOMINAL WAGES NOTIONAL ACCOUNT NOTIONAL ACCOUNTS OFFSHORE MARKETS OPPORTUNISTIC BEHAVIOR OUTPUT PAY AS YOU GO PENALTIES PENSION PENSION BENEFITS PENSION CONTRIBUTION PENSION CONTRIBUTIONS PENSION EXPENDITURES PENSION FINANCING PENSION FUND PENSION FUND MANAGEMENT PENSION FUND MANAGERS PENSION FUNDS PENSION REFORM PENSION REFORMS PENSION REGIMES PENSION SCHEME PENSION SCHEMES PENSION SYSTEM PENSION SYSTEMS PENSIONERS PENSIONS PERFORMANCE MEASURES PILLAR BENEFITS PILLAR SYSTEMS POLICY RESPONSES PORTFOLIO PORTFOLIO ALLOCATIONS PORTFOLIO DIVERSIFICATION PORTFOLIOS PRICE INDEXATION PRIVATE PENSIONS PUBLIC PENSION PUBLIC PENSIONS PUBLIC SYSTEM PURCHASING POWER RATE OF RETURN RATES OF RETURN REGULATORY RESTRICTIONS REPLACEMENT RATES RETIREES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT INCOME RETIREMENT INCOME SYSTEMS RETIREMENT PENSION RETIREMENT SAVINGS RETURNS RISK TAKING SAVINGS ACCOUNTS SECURITIES SOCIAL PROTECTION SUBSIDIARY TAX TRANSFERABLE SECURITIES UNFUNDED PENSION VALUATION VICTIMS VOLATILITY WAGE GROWTH WAGE INDEXING WILL World Bank Pensions in Crisis : Europe and Central Asia Regional Policy Note |
| geographic_facet |
Europe and Central Asia Central Asia Europe and Central Asia Eastern Europe |
| description |
The financial crisis has significantly
impacted pension systems in the Europe and Central Asia
region (ECA) tempting governments to make policy changes in
response to the increased pension deficits they are facing.
The crisis exacerbates the existing financial imbalance in
the public pension systems by reducing contribution revenues
sharply while leaving expenditures constant or even higher.
The crisis also resulted in a sharp drop in financial asset
values which affects pensions provided by funded pillars.
Consequently, no pension system, however structured, has
been immune to the crisis. Despite the severity of the
financial crisis, it pales in comparison to the demographic
crisis which the region will face. Therefore, countries are
urged not to make long-term policy changes to address
short-run fiscal concerns. Any short-run responses should be
consistent with strategies to address the long-run
challenges to the pension system. The long-run focus should
include: (i) protecting the purchasing power of pensioners
and fiscal sustainability of the system, both during the
crisis and beyond, by shifting to inflation indexation of
pensions, (ii) encouraging individuals to work more and
longer by raising retirement ages, equalizing retirement
ages between men and women, and curbing early retirement,
and (iii) enhancing public awareness of the increasingly
limited capacity of publicly provided pensions as
populations age. |
| format |
Economic & Sector Work :: Policy Note |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Pensions in Crisis : Europe and Central Asia Regional Policy Note |
| title_short |
Pensions in Crisis : Europe and Central Asia Regional Policy Note |
| title_full |
Pensions in Crisis : Europe and Central Asia Regional Policy Note |
| title_fullStr |
Pensions in Crisis : Europe and Central Asia Regional Policy Note |
| title_full_unstemmed |
Pensions in Crisis : Europe and Central Asia Regional Policy Note |
| title_sort |
pensions in crisis : europe and central asia regional policy note |
| publisher |
Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2009/11/13246000/pensions-crisis-europe-central-asia-regional-policy-note http://hdl.handle.net/10986/18728 |
| _version_ |
1764440964301062144 |
| spelling |
okr-10986-187282021-04-23T14:03:45Z Pensions in Crisis : Europe and Central Asia Regional Policy Note World Bank AGING POPULATION AGING POPULATIONS ASSET PRICES ASSET VALUES AVERAGE WAGE GROWTH BASIC PENSION BENEFICIARIES BENEFIT LEVELS BOND MARKET CAPITAL GAINS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT COLLECTIVE INVESTMENT COMPENSATION CONSUMER PRICE INDEX CONTRIBUTION RATE CONTRIBUTION RATES COPYRIGHT CLEARANCE COPYRIGHT CLEARANCE CENTER DEFICITS DEMOGRAPHIC DEVELOPING COUNTRIES DISABILITY DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET EARLY RETIREMENT PENSIONS ECONOMIC CRISIS ELDERLY EMPLOYEE EMPLOYMENT EQUITIES EU EXPENDITURE EXPENDITURES FINANCIAL ASSET FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL INFRASTRUCTURE FINANCIAL INSTRUMENTS FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FISCAL POLICY FIXED INCOME FOREIGN FINANCING FUND MANAGEMENT FUND MANAGERS FUNDED PENSION SYSTEMS FUNDED PENSIONS FUNDED SYSTEMS FUTURE PENSION FUTURE PENSIONS GOVERNMENT BONDS GOVERNMENT FINANCES GROSS DOMESTIC PRODUCT GROSS WAGE HUMAN DEVELOPMENT ILLIQUIDITY INCOME GROWTH INCOME INSTRUMENTS INCOMES INDEXED ANNUITIES INDEXED BOND INDEXED BONDS INDIVIDUAL ACCOUNT INFLATION INFLATION INDEXATION INSURANCE INSURANCE COMPANIES INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE INTERNATIONAL PORTFOLIO INVESTING INVESTMENT OPTIONS INVESTMENT REGULATION INVESTMENT STRATEGY ISSUANCE JUDGE LABOR COSTS LABOR MARKET LEGAL STATUS LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LITERACY LONG TERM SAVINGS MARK TO MARKET MARKET DEVELOPMENT MARKET SIZE MONETARY FUND MULTIPILLAR SYSTEM NEW ENTRANTS NOMINAL WAGES NOTIONAL ACCOUNT NOTIONAL ACCOUNTS OFFSHORE MARKETS OPPORTUNISTIC BEHAVIOR OUTPUT PAY AS YOU GO PENALTIES PENSION PENSION BENEFITS PENSION CONTRIBUTION PENSION CONTRIBUTIONS PENSION EXPENDITURES PENSION FINANCING PENSION FUND PENSION FUND MANAGEMENT PENSION FUND MANAGERS PENSION FUNDS PENSION REFORM PENSION REFORMS PENSION REGIMES PENSION SCHEME PENSION SCHEMES PENSION SYSTEM PENSION SYSTEMS PENSIONERS PENSIONS PERFORMANCE MEASURES PILLAR BENEFITS PILLAR SYSTEMS POLICY RESPONSES PORTFOLIO PORTFOLIO ALLOCATIONS PORTFOLIO DIVERSIFICATION PORTFOLIOS PRICE INDEXATION PRIVATE PENSIONS PUBLIC PENSION PUBLIC PENSIONS PUBLIC SYSTEM PURCHASING POWER RATE OF RETURN RATES OF RETURN REGULATORY RESTRICTIONS REPLACEMENT RATES RETIREES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT INCOME RETIREMENT INCOME SYSTEMS RETIREMENT PENSION RETIREMENT SAVINGS RETURNS RISK TAKING SAVINGS ACCOUNTS SECURITIES SOCIAL PROTECTION SUBSIDIARY TAX TRANSFERABLE SECURITIES UNFUNDED PENSION VALUATION VICTIMS VOLATILITY WAGE GROWTH WAGE INDEXING WILL The financial crisis has significantly impacted pension systems in the Europe and Central Asia region (ECA) tempting governments to make policy changes in response to the increased pension deficits they are facing. The crisis exacerbates the existing financial imbalance in the public pension systems by reducing contribution revenues sharply while leaving expenditures constant or even higher. The crisis also resulted in a sharp drop in financial asset values which affects pensions provided by funded pillars. Consequently, no pension system, however structured, has been immune to the crisis. Despite the severity of the financial crisis, it pales in comparison to the demographic crisis which the region will face. Therefore, countries are urged not to make long-term policy changes to address short-run fiscal concerns. Any short-run responses should be consistent with strategies to address the long-run challenges to the pension system. The long-run focus should include: (i) protecting the purchasing power of pensioners and fiscal sustainability of the system, both during the crisis and beyond, by shifting to inflation indexation of pensions, (ii) encouraging individuals to work more and longer by raising retirement ages, equalizing retirement ages between men and women, and curbing early retirement, and (iii) enhancing public awareness of the increasingly limited capacity of publicly provided pensions as populations age. 2014-06-23T22:20:31Z 2014-06-23T22:20:31Z 2009-11-12 http://documents.worldbank.org/curated/en/2009/11/13246000/pensions-crisis-europe-central-asia-regional-policy-note http://hdl.handle.net/10986/18728 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work Europe and Central Asia Central Asia Europe and Central Asia Eastern Europe |