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Tax rules should not hinder the build-up of funding buffers by private pension funds, but should avoid the abuse of tax deferrals. As risks are increasingly being shifted to individual households, protection of pension beneficiaries is an issue, and financial education and the provision of advice may need to be strengthened. Governments could help to facilitate the development and expansion of markets for undersupplied financial instruments that will be useful for retirement savings and the provision of pension benefits;
The demographic transition to older societies, in the most advanced economies but also beyond, is ushering in economic and financial changes. These were reviewed by the G10 in a 1998 report, The Macroeconomic and Financial Implications of Ageing Populations, which analysed the impact of population ageing on growth and living standards, public finances, financial markets and international capital flows. In line with some of the main recommendations of that report, pension system reforms have been undertaken since then in most G10 countries, and experience with private saving for retirement has continued to build up, with substantial and instructive differences across countries.
At the same time the OECD published a comprehensive book “Pensions at a Glance: Public Policies across OECD Countries - 2005 Edition”. This comparison of key features of pension systems of OECD countries provides coverage of retirement ages, benefit accrual rates, ceilings, and indexation. Future pension entitlements are shown for full-career workers at different earnings levels. Indicators measure redistribution in pension systems, the cost of countries' pension promises, and potential resource transfer. Thirty country chapters explain pension systems and replacement rates in detail.
OECD Report on Ageing and Pension System Reform
Summary: Pensions at a Glance
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