OECD: "Urgent need to reform pension systems"
30 June 2009
"Pension reforms should include better regulation, more efficient administration, clearer information about risks, rewards of different options and an automatic switch to less risky investments," the OECD states.
With rising unemployment and falling tax revenues squeezing public finances, OECD governments face budget deficits of nearly 9% of national income on average in 2010. This leaves little room for more generous public pensions, according to the 2009 edition of the OECD’s biennial Pensions at a Glance. Some countries have already had to cut back on future public spending on pensions.
“Reforming pension systems now to make them both affordable and strong enough to provide protection against market swings citizens will save governments a lot of financial and political pain in the future“, OECD Secretary-General Angel Gurria said.
© OECD
