The Future of Social Security Pensions in Europe

Year Published 2001
Business unit: Special Projects
Resource type: Discussion papers
File type: PDF
Theme(s): Employment & labour markets, Finance, Labour

Description

This paper discusses a possible solution to the double problem that faces European governments in dealing with the future of Social Security pensions. Like other governments around the world, they must deal with the rising cost of pensions that will result from the increasing life expectancy of the population. But the European governments have the extra problem that any solution must be compatible with a European Union labor market in which individuals from any member country are free to work anywhere within the European Union. The solution to this double problem that is developed in this paper combines an investment-based system of individual accounts with a ìnotional defined contribution system financed by pay-as-you-go taxes.

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