The Future of the Pension System: Parametric Changes or Change of Paradigm?
26 Pages Posted: 23 Dec 2012
Date Written: November 15, 2012
The principal objective of this paper is to discuss shortcomings of the current paradigm of provision of the retirement income. The main conclusion is that in post-industrial society the traditional pension system, a mandatory and comprehensive earnings related scheme, should be replaced by a combination of voluntary private pension schemes funded by individual savings and investments in human capital and by state insurance against poverty. Specific recommendations are made for a socially acceptable transition of the pension system.
Keywords: pension system, post-industrial society, parametric reforms, retirement age
JEL Classification: H55, J18, I30
Suggested Citation: Suggested Citation