Private pensions for Europe

Economic Policy Seminar on 7th Sep 2011 at 12:45pm

Private pensions for Europe

This event was organised as the presentation of the paper Private Pensions for Europe written by Lans Bovenberg and Casper van Ewijk.

Pension systems in Europe are in deep crisis as a result of the toxic mixture of aging, the financial crisis, and poorly functioning labour markets. Both public and private pensions have been affected by the financial turmoil. Pensions are important for providing income to the old, but pension systems also contribute to the optimal allocation of economic risks in society. This latter aspect is underrated in the policy debate.

In the paper presented at this event, the two authors examine ways forward in the European policy debate by considering how collective pension funds can implement optimal risk management on behalf of their participants, and contribute to stable financial markets for the European economy. Doing so, collective private pension plans based on capital funding may offer an appealing European model as an alternative to individual DC plans and corporate DB plans, and as a complement of public PAYG systems aimed at poverty alleviation.

The authors' presentation were followed by comments from Heikki Oksanen, Research Adviser at the Directorate General for Economic and Financial Affairs, European Commission.

The event was moderated by Bruegel research fellow Benedicta Marzinotto.

Event materials

Paper - L. Bovenberg, C. van Ewijk, Private pensions for Europe download

Presentation - Lans Bovenberg and Casper van Ewijk here

Presentation - Heikki Oksanen here