The public–private pension mix in OECD countries

Abstract

This article provides a survey of selected aspects of the relationship between public and private pension provision in European countries in the Organisation for Economic Co-operation and Development and compares this with other regions of the OECD. Population ageing has led many OECD countries to undertake a wide range of pension reforms. The overall effect of these reforms has in many cases been to significantly reduce public pension promises. This, in turn, has increased the interest in the role of private pensions, which has expanded significantly in a number of OECD countries. The article discusses the extent to which a number of countries will need to further increase private provision in order to guarantee adequate future retirement incomes.

The Politics of Public and Private Pension Generosity in Advanced Democracies

“…While Queisser et al . (: 562–3) group mandatory private pension plans together with public schemes, Scruggs does so only in some cases (Scandinavia), while in others – namely Australia, the Netherlands and Switzerland – he has not included schemes the OECD codes as mandatory private plans into his (public) pension replacement rates (cf. Scruggs : 10, 38, 44).…”

“…It is important to note, moreover, that they conclude that where public pensions were cut, the focus of compensatory expansions of private pensions was more often than not on voluntary schemes (Queisser et al . : 561).…”

“…Queisser et al . () in some respects come closest to what we have in mind, but they focus on expenditure, not on replacement rates, and they do not look for partisan effects. It is important to note, moreover, that they conclude that where public pensions were cut, the focus of compensatory expansions of private pensions was more often than not on voluntary schemes (Queisser et al .…”

Home-Ownership and Pensions: Negative Correlation, but No Trade-off

“…In order to understand the relationship between housing and pensions, one should in principle take into account all policies affecting the material well-being of the elderly, such as housing allowances (Kemp, 2011), social housing (Dewilde & Raeymaeckers, 2008), the regulation of rental accommodation (Lind, 2001), state support for the acquisition of home-ownership (Atterhög, 2005), access to health care and long-term care (Castles, 1998, p. 10;Radner, 1997), the pension mix between public and private forms of provision (Queisser et al, 2007) and means-tested social assistance targeted at the elderly (Gough et al, 1997). All these policies can provide decommodification and influence the extent to which households decide to make home-ownership part of a strategy to accumulate an adequate old-age welfare package.…”

“…We have also included voluntary private pensions for Denmark, the Netherlands, Sweden and Australia. Most occupational pension programmes in these four countries are classified by the OECD as voluntary private pensions, but have in fact coverage rates above 80%, hence we consider them as mandatory (Queisser et al, 2007; see also OECD country notes). In the Netherlands, social partners organised in economic sectors negotiate mandatory agreements on pensions.…”