Definition
Pension systems refer to institutional and occupational settings that provide retirement income during retirement. Pension systems are commonly described in a multi-pillar pension setting (Holzmann et al. 2008). Pension systems combine government and privately sponsored support to finance a suitable standard of living during retirement. Governments provide income security to maintain a minimum standard of living and privately sponsored plans, through employers or individual savings, provide supplemental retirement income. Benefits differ across pension systems in two ways, depending on who the main bearer of the risks is. Some schemes provide guarantees in the benefit payout and transfer the financing risk to the sponsor. Others guarantee a minimum level of financing, transferring the risk to the retiree. The benefit design has an impact in the long-term sustainability...
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Alonso-García, J. (2019). Pension Systems. In: Gu, D., Dupre, M. (eds) Encyclopedia of Gerontology and Population Aging. Springer, Cham. https://doi.org/10.1007/978-3-319-69892-2_526-1
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DOI: https://doi.org/10.1007/978-3-319-69892-2_526-1
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