Arrangements for pension savings invested to accumulate assets to finance pensions (i.e. asset-backed pension arrangements) have grown over the past two decades in most OECD member countries. This is stated on the 2022 Outlook with regard to pensions achieved by the OECD: the report states that total pension assets accounted for just over 100% of the OECD's total GDP at the end of 2021. These provisions therefore play a key role in the diversification of pension funding sources. "Solid pension systems will be important in protecting the living standards of our aging population, as demands on these systems continue to grow," said OECD Secretary General Mathias Cormann. “The challenges are global: jurisdictions around the world face similar challenges in the context of lower growth, high inflation and financial market uncertainty, while responding to the implications of aging populations. We will have to continue to develop and strengthen a multi-pillar system that is the combination of different types of pension schemes that complement each other and diversify risks. " To help countries improve the soundness of pension systems and build people's confidence in their best interests, the report includes a number of recommendations on how to introduce, develop and strengthen asset-backed pension schemes. These schemes should complement public pay-as-you-go pensions and be designed to diversify pension funding sources; the aim is to make pension systems more resilient to the challenges they face, including population aging.
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