Rethinking the role of state pension (TUC pension conference 2021 panel)

The Trades Union Congress (TUC) discussed the role of the state in the public-private pension mix in its TUC pension conference (fourth day) 2021. Professor Ebbinghaus contributed a presentation, “Inequalities & Poverty Risks in Old Age across European Pension Systems“, discussing the United Kingdom in comparative perspective. Comparing poverty rates across Europe, the British pension system has higher poverty rates compared to the Danish or Dutch basic pension systems but also the EU average or Germany. While in Bismarckian social insurance systems, poverty reduction is a secondary policy goal, some are able to reduce poverty through social pensions and compensating for gaps in contributions. In Beveridgean multipillar pension system, the primary goal is to provide a public basic pension for all residents, though its efficacy depends on its generosity, whereas the important private supplementary pension pillars increase inequality. The role of the state pension thus needs to be understood in the context of the overall architecture of the public and private pension system in the light of the goal to reduce poverty and inequality in old age.

Presentation (PDF) at TUC pension conference, 18 March 2021, 1 pm.

Multiple Hidden Risks for Older People: The Looming Pension Crisis Following this Pandemic

Journal of European Social Policy (JESP) Blog, 04/30/2020, by Bernhard Ebbinghaus,
  • Every fourth person in Europe receives an old age, survivor or disability pension benefit, an automatic stabilizer during this crisis
  • Public pay-as-you go pension will soon come under severe pressure due to fiscal pressures accelerated during this pandemic
  • Private funded pensions with their additional risks, were hit hard after the 2008 crash and will again increase inequalities in old age in coming years
  • Older people transitioning from work to retirement will face immediate difficulties that need to be addressed