Väänänen Niko
Pension reform recommendations in the EU socioeconomic governance
Demographic ageing has sparked the European Commission to recommend countries to introduce pension reforms. In our article ‘Financial sustainability above all else?’, we analyse the recommendations given in the framework of EU socioeconomic governance between 2011 to 2023. How well do these recommendations match the objectives set by the Social Protection Committee in the Open Method of Coordination (OMC)?
Surplus of Finnish Pension Institutions and the Commission’s Debt Calculation – What Happened?
The financing of Finland’s statutory pensions is unique because part of the pension contribution is funded. In the national accounts, the surplus of Finland’s pension institutions is considered in the financial balance of public entities. The surplus of pension institutions reduces the deficit of public entities. The European Commission recently changed its long-term debt calculations, and the surplus of pension institutions is no longer assumed to reduce public indebtedness. What is this all about?
Do we need special pension provisions for hazardous or arduous jobs?
In Europe, retirement ages keep rising. Yet, in many European countries, some people can retire earlier than others. They are granted a special pension based on their hard jobs. Is this type of benefit needed?
Three things to remember when comparing European pension systems
Citizens, journalists and experts enjoy making comparisons which put their national pension systems into a wider context. It is common to compare retirement ages between countries. Although such an exercise can be informative, a simple comparison can result in misunderstandings. Here are three tips to avoid common mistakes.
The perfect European pension system?
Pension systems are not easy to comprehend. In Europe several different pension designs coexist. A short story might shed some light on why people take pride in the pension system of their country.
Should parenthood be credited in pensions?
Pensions are intergenerational contracts. In recent decades, many European countries have witnessed low fertility rates, which has put pressure on that contract. Although many assume that they have paid their own pension, this is not the case. When we pay pension contributions, we mostly pay the pensions of the previous generation. Only on a minor …
The size of pension funds in different countries
We recently updated our comparative data representing the size of pension funds in different countries in relation to the country’s GDP. We included funds of both statutory (1st pillar) and occupational (2nd pillar) pension schemes. As a reader’s guide we would like to briefly explain some of the different funding mechanisms. 1. Liquidity funds Every …
