2017
DOI: 10.1007/s11294-017-9636-x
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Overview of the Portuguese Three Pillar Pension System

Abstract: 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 p… Show more

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Cited by 7 publications
(11 citation statements)
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“…Some countries, the United States being one of the best examples, have a long tradition of companies creating the conditions for providing post-retirement benefits for their former employees via private funding (McGill et al , 2010). On the other hand, a group of other countries (in which Portugal is, to a large extent, included) do not, due to very broad and developed public systems or the non-existence of economic and fiscal benefits that justify the creation and maintenance of private pension plans, and thus, this type of scheme still has little significance in the general economic context (Garcia, 2017).…”
Section: Pension Funds In Portugalmentioning
confidence: 99%
See 1 more Smart Citation
“…Some countries, the United States being one of the best examples, have a long tradition of companies creating the conditions for providing post-retirement benefits for their former employees via private funding (McGill et al , 2010). On the other hand, a group of other countries (in which Portugal is, to a large extent, included) do not, due to very broad and developed public systems or the non-existence of economic and fiscal benefits that justify the creation and maintenance of private pension plans, and thus, this type of scheme still has little significance in the general economic context (Garcia, 2017).…”
Section: Pension Funds In Portugalmentioning
confidence: 99%
“…Another reason that helps explain this low relevance is the transfer of several pension funds to the public pension system in 2004, 2010 and 2011 (Casey, 2014; Garcia, 2017).…”
Section: Pension Funds In Portugalmentioning
confidence: 99%
“…After 2007, there were rises in the normal retirement age in Portugal, interlinked with population longevity increases coupled with the introduction of a “sustainability factor” into the calculation of the pension benefit value, which penalises the pension earnings of those who retire prior to the normal retirement age (Garcia, ). Old‐age pension benefits are calculated by multiplying three factors: the earnings reference, the record of years of contribution (up to a maximum of 40), and the sustainability factor.…”
Section: The Portuguese Public Pension Systemmentioning
confidence: 99%
“…Social security system financial sustainability analysis in Portugal has received a lot of attention, due to its impact on total government spending (Silva et al, 2004;Garcia and Lopes, 2009;OECD, 2011;Garcia, 2017). In contrast, the estimated impact of public pension wealth on private saving has not been studied within private saving determinants.…”
mentioning
confidence: 99%
“…Finally, the public pension wealth, , was estimated following Feldstein (1974). 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).…”
mentioning
confidence: 99%