Reforming the UK retirement system: Privatization plus a safety net

摘要: Steven A. Sass is a research associate at the Center for Retirement Research Boston College and author of The Promise Private Pensions (Harvard University Press 1997) co-author “Social Security: How Social Secure Should It Be?” in Robert Triest, eds., Security Reform: Links to Saving, Investment, Growth (Federal Reserve Bank 1997). He thanks Alicia Munnell Michael Orszag critical corrections improvements, Andy Eschtruth heroic editorial help, Amy Chasse elegant design production. gratefully acknowledges Cogan Family Foundation providing support this publication. This brief third series that profiles national retirement income systems their response impending demographic transition. Modern an outgrowth industrialization transfer nation’s workforce from family communal production organized wage employment. transition created enormously productive economy. But workers face increasingly uncertain employment prospects as they age, eventually complete loss earnings. Only rarely can worker’s savings offset wages. So governments, employers, unions responded by organizing formal systems. maturation these over past halfcentury has made generally secure welldefined stage life. Thanks extended longevity ever-earlier withdrawals workforce, retirements now last about twenty years, on average, have emerged one great blessings provided modern industrial society. declining fertility rising placed blessing risk. Each system out its particular history ideological commitments. Thus roles played social security, employer pensions, individual savings, continued work vary dramatically. current challenge reflects institutional set-up economic prospects, commitments, ability reform large complex institutions. framed financing problem, which requires benefit cuts, larger contributions, increased saving, and/or higher-yielding investments. fundamentally labormarket involving work/retirement divide even when “retired.” addition reviewing financial reforms, focuses initiatives redefine labor market opportunities incentives older role source old-age income; whether reforms date are consistent with redefinition; sufficient; what remains be done. A Series Global Briefs REFORMING THE UK RETIREMENT SYSTEM: PRIVATIZATION PLUS SAFETY NET