Multipillarisation remodelled: the role of interest organizations in British and German pension reforms

Abstract

Recent reforms have responded to demographic ageing and fiscal challenges by shifting toward the multipillarization of pensions to achieve financial sustainability. Reforms towards privatization and marketization of retirement income provision occurred in Britain and Germany with different pension system legacies. While public opinion supports largely the status quo, the stakeholders, in particular organized capital and labour, have evolved in their positions towards pension reforms. The analysis seeks to draw out how organized interests have sought to influence mulitipillarization but also adapted their strategies in the context of increasing financialization in the two political economies. The position of trade unions, employers' associations, social advocacy groups and the finance sector has increasingly embraced multipillarization, earlier and more so in Britain than in Germany. A reversal of pension financialization seems no longer possible but the inequalities and uncertainties need to be addressed in order to make multipillarization politically sustainable.

Sustainability of funded pension schemes: A financial position perspective using options

“…If most of the people benefit from the transition, according to the condition described in ( 21), the new system may be sustainable. Alternatively, if a critical mass of participants is worse off after the transition, political pressure might push toward pension reversals (Grech, 2018;Orenstein, 2013;Ebbinghaus, 2019). This study discusses the re-reforms pension wave of the last two decades back toward the PAYG scheme, mainly in the CEE and Latin American countries.…”

“…Equation (10) describes the difference between the two unfunded types of pillars' benefits, before and after the pension transition:…”

Modelos de financiarización de las pensiones en cuatro estados de bienestar europeos

“…Since the 1990s, therefore, several reforms have been enacted to facilitate a move away from the PAYGO first pillar and towards capital-funded occupational and personal pensions. The most notable of these, the 2001 Riester reforms, were to compensate for statutory pension cutbacks by subsidizing capitalfunded occupational and personal pension plans, predominantly DC (Ebbinghaus 2019;Wiss 2019). Carstensen and Röper (2019) place the Riester reform in the context of a broader process of financial liberalization in Germany: to those in favor of moving towards a more market-based financial system, capital-funded pensions were a highly salient policy issue.…”

The Enlightened Significance of German Retirement Welfare System to Domestic Aging Population

“…In his speech, he mentioned "we must put people and their lives first." 1 With the intense increase of a population aging, the topic of health for all has become one of the hot topics discussed in academia and healthcare industry. From the data released by the National Bureau of Statistics on May 11, 2021, we can see that between 2021 and 2030, the total population and proportion of the working-age population will continue to decline at a relatively rapid rate, and the population dependency ratio will continue to increase, from low.…”

“…As the "post-60s"-born in the second baby boom enter the retirement stage, the growth rate of the elderly population will accelerate significantly. By 2030, the proportion of the elderly population will reach 1/4 of 1 CCTV-1 Comprehensive Channel. Xi Jinping attended the Gl obal Health Summit and delivered an important speech.…”