An Appraisal of Public Pension Reserve Funds Management - Evidence From Portugal

Garcia, Maria Teresa Medeiros

doi:10.5901/mjss.2014.v5n23p333

Cited by 2 publications

(2 citation statements)

References 18 publications

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“…This partial public capitalization seems to provide good perspectives for guaranteeing the financial sustainability of the Social Security system, but the need for sound management and governance might be a concern. Garcia (2014) observes that, in general, the Portuguese public pension reserve fund shows a good level of governance and has been a positive experience, although some weaknesses have been identified which highlight the need for reform.…”

Section: Partial Public Capitalizationmentioning

confidence: 99%

Overview of the Portuguese Three Pillar Pension System

Garcia

2017

Int Adv Econ Res

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In order to cope with alleged future financial problems, several changes were made to the design of the Portuguese pension system since 2000. The aim was to achieve the diversification of retirement income sources across providers, both public and private, across the three pillars: public, industry-wide, and personal, and also across the financing forms of pay-as-you-go and funded. This paper describes these changes and analyses the results regarding, principally, the weight of each pillar and the investment performance of both public pension reserves and private pension funds. The main finding is that, in effect, there is one substantial longstanding pillar, and that is the public system.

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Section: Partial Public Capitalizationmentioning

confidence: 99%

Overview of the Portuguese Three Pillar Pension System

Garcia

2017

Int Adv Econ Res

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“…In Portugal, the public pension system is considered to be the substantial longstanding pillar in providing adequate retirement income (Garcia, 2017). It is a defined-benefit and pay-as-you-go system, where the old age pension benefit formula was changed in order to take into account lifetime wages and a sustainability factor which is related to the evolution of average life expectancy (ALE) (Garcia, 2014). Furthermore, the legal age of retirement started rising with ALE, being 66 years and 4 months in 2017.…”

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confidence: 99%

Private Saving Determinants in Portugal

Garcia¹,

Rodrigues²,

Nunes³

2019

Mediterranean Journal of Social Sciences

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The combination of projected increases in the expenditure of the public pension scheme and low rates of private saving constitutes a policy challenge in Portugal. Policy debate embrace pension reform and the redoubling of household saving efforts. The purpose of this paper is to revisit the determinants of household saving in order to inform the debate with research findings, employing a constructed public pension wealth variable in a life cycle consumption/saving model pioneered by Feldstein (1974). We use time series techniques and data from 1983 to 2012. The findings show that an increase in the public pension wealth variable does not boost saving suggesting that concerns with saving to cope with the length of the life expectancy at the retirement age are not enough to reject the view that the public pension benefit is a substitute for household wealth. The other results are consistent with expectations: increases in disposable income positively impact saving; there is a significant negative propensity to save out of household wealth increase; and improvement in the government balance engender significant saving decrease.

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An Appraisal of Public Pension Reserve Funds Management - Evidence From Portugal

Cited by 2 publications

References 18 publications

Overview of the Portuguese Three Pillar Pension System

Overview of the Portuguese Three Pillar Pension System

Private Saving Determinants in Portugal

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