CARE Experts Webinar: The evolution of pension systems and the challenges ahead

Description

Presented by Mr Andrew Reilly.

Pension Analyst, Social Policy Division, Directorate for Employment, Labour and Social Affairs, OECD

Pension systems have had to continually evolve since they were introduced. Initially they were commonly available only to government workers or they were intended to provide income only for a very short period of time. As life expectancy has improved significantly over the last century pensions now need to cover over 20 years in retirement on average. Financial crises and global recessions have all had an impact in recent decades. Now, we are faced with continued population ageing, with Asian countries being particularly affected. Social protection schemes are facing a major challenge with population ageing – pension systems are being squeezed from two directions, as rising life expectancy typically means more aggregate expenditure on pensions, and lower fertility means fewer working-age people to pay contributions. It is also expected to increase spending in the health and the long-term care system and add to unpaid work obligations, threatening gender equality. While immigration can slow down the shrinkage of the working age population, migration at levels necessary to meaningfully counteract the trend might not be politically palpable. What can be done to ensure both adequate and sustainable pension systems globally and for Singapore specifically?