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Welfare Reform on the Web (May 2005): Pensions - Overseas

AN ECONOMIC ASSESSMENT MODEL OF PENSION REFORM TRANSFERABILITY: THE CASE OF VENEZUELA

T. Query and E. Diz

Pensions, vol.10, 2005, p.167-179

Paper examines the characteristics of the Venezuelan social security system. Venezuela is expected to experience a financial shortfall in its projected liabilities for pension and social healthcare provision. Authors next present an in-depth discussion of the various social security reforms implemented in other Latin American countries. Suggestions for the reform of the social security system in Venezuela are made by integrating the concepts used in other restructurings. Article concludes that, given the political and economic instability of the region, radical reform of the existing system is not feasible. An incremental approach with minimum disruption is more attainable.

GERMANS SEEK SAFEST WAY OUT OF PENSIONS MAZE

P. Jenkins

Financial Times, April 11th 2005, p.22

Like many other Western nations, Germany has an ageing population and cannot to meet its state pensions bill - but its plight is particularly acute. The combination of ageing baby-boomers and a shrunken birth rate since the 1970s has made Germany's pensions timebomb one of the most explosive in the world, alongside Italy and Japan. Deutsche Bank research calculates that the German state pension, currently worth an average 70 per cent of a person's net salary, will be worth just 56% by 2035. The article looks at Germany's old age income law, a package of legislative change that came into effect in January, designed to encourage people to save with tax breaks but to restrict them from using their maturing investments other than as retirement income.

SUSTAINABLE PENSIONS AND RETIREMENT SCHEMES IN HONG KONG

N. Chow and K.-L. Chou

Pensions, vol.10, 2005, p.137-143

The pension system in Hong Kong has three pillars according to the World Bank's classification:

  • a tax-financed, means-tested publicly funded pillar;
  • mandatory personal savings accounts;
  • voluntary private savings and family support.
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