IMF Working Papers

Reforming Pensions: Myths, Truths, and Policy Choices

By N. A. Barr

August 1, 2000

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N. A. Barr Reforming Pensions: Myths, Truths, and Policy Choices, (USA: International Monetary Fund, 2000) accessed November 8, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper discusses the strategic building blocks of pension reform. The early sections set out the simple economics of pensions and discuss a series of myths which have proved remarkably persistent. Subsequent sections draw together the conclusions for policy design from earlier theoretical discussion, set out the prerequisites which any pension reform must respect, and discuss the range of choices facing policymakers. The main conclusions are threefold: the key variable is effective government; from an economic perspective the difference between PAYG and funding is second order; and the range of potential choice over pension design is wide.

Subject: Aging, Expenditure, Labor, Pension spending, Pensions, Population and demographics, Retirement

Keywords: Aging, Demographic change, Excess demand, Funding, Global, Government-operated fund, Interest rate, Net present value, Pay-As-You-Go, PAYG pension, PAYG scheme, Pension spending, Pensions, Private sector, Public spending, Rate of return, Retirement, Retirement age, State scheme, U.K. government actuary, WP

Publication Details

  • Pages:

    56

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2000/139

  • Stock No:

    WPIEA1392000

  • ISBN:

    9781451856033

  • ISSN:

    1018-5941

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