The OECD published its fourth edition of ‘Pension Markets in Focus’, which reviews recent trends in long-term and retirement savings, their size and economic significance, and trends in asset allocation. Pension funds are increasingly diversifying their portfolios and looking to enhance returns through more sophisticated strategies, including through the use of a range of alternative investments.
Recent years have witnessed intense pension reform efforts in countries around the globe, which have often involved an increased use of funded pension programmes managed by the private sector.
2006 saw a continued, steady expansion of pension funds. Funded arrangements are playing an increasingly important role in delivering retirement income security in many countries and reforms to encourage the safe development of private pensions are now in place in many countries. In numerous OECD countries where pension fund markets are still currently in their infancy, there is a huge potential for growth.
The emergence of new sovereign and public pension reserve funds (SPFs) are becoming a key financing element of pension systems. SPFs have become a very useful tool for future public pension reforms, and in this respect, may also call for appropriate regulatory framework, along the lines of those provided for private pension funds.
Pension market in Focus
© OECD
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