OECD Private Pensions Outlook 2008
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Performance Indicators of Private Pension Systems
The 2008 financial crisis focused attention on the reliability of private pensions systems, with some workers suddenly confronted by the prospect of losing a significant part of their benefits. Some schemes will recover less quickly from the crisis than others, and there are even fears that some may not recover at all, at least not without help from the taxpayer. However, the performance of the private pension system as a whole should not be judged by focusing on investment returns in a single year alone. In particular, in order to gauge the private pension system’s ability to deliver benefit adequacy and security in old age, one needs to make projections about the level of benefits that these plans may pay in the future. The following chapter provides a set of performance indicators of private pension systems. In addition to benefit projections for a representative private pension plan in each country, the chapter analyses indicators on coverage, investment performance, solvency and administrative efficiency (operating costs and fees charged to participants) of private pension systems.
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