NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Entitlement Reforms in Europe: Policy Mixes in the Current Pension Reform Process

Axel H. Börsch-Supan

NBER Working Paper No. 18009
Issued in April 2012
NBER Program(s):   AG   PE

Many European countries have begun (or have announced) programs intended to reduce the growth of entitlement programs, in particular of public pensions.

Current costs are high, and the pressures will increase due to population aging and negative incentive effects. This paper focuses on the pension reform process in Europe. It links the causes for current problems to the cures required to make the pay-as-you-go entitlement programs in Continental Europe sustainable above and beyond the financial crisis. It discusses examples which appear, from a current point of view, to be the most viable and effective options to bring entitlement systems closer to fiscal balance and still achieve their key aims.

There is no single policy prescription that can solve all problems at once. Reform elements include a freeze in the contribution and tax rates, an indexation of benefits to the dependency ratio, measures to stop the current trend towards early retirement, an adaptation of the normal retirement age to increased life expectancy, and more reliance on private savings - elements of a sustainable but complex multipillar system of pensions and similar entitlement programs.

download in pdf format
   (375 K)

email paper

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

This paper is available as PDF (375 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18009

Published: Entitlement Reforms in Europe: Policy Mixes in the Current Pension Reform Process, Axel H. Börsch-Supan. in Fiscal Policy after the Financial Crisis, Alesina and Giavazzi. 2013

Users who downloaded this paper also downloaded these:
Boersch-Supan, Coppola, and Reil-Held w18014 Riester Pensions in Germany: Design, Dynamics, Targetting Success and Crowding-In
Smetters and Theseira w17015 A Matter of Trust: Understanding Worldwide Public Pension Conversions
Wyplosz w17884 Fiscal Rules: Theoretical Issues and Historical Experiences
Boersch-Supan and Wilke w10525 The German Public Pension System: How it Was, How it Will Be
Vogel, Ludwig, and Boersch-Supan w18856 Aging and Pension Reform: Extending the Retirement Age and Human Capital Formation
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us