Home |  Elder Rights |  Health |  Pension Watch |  RuralAging |  Armed Conflict |  Aging Watch at the UN  

Mission  |  Contact Us  |  Internships  |  Donate Now!  

Pension Issues around the World

Resources 

Also see our sections on Social Pensions, Trade Unions and Pensions
and US Pension Issues

Articles in Arabic | Chinese | French | Russian | Spanish

Africa 

Zimbabwe: Older Zimbabweans Lose Life Savings (May 27, 2009)
The Zimbabwean government has suspended the use of its dollar for a year, resulting in the loss of savings for many older people. The only currencies now in use are the South African rand, the Botswana pula, and the US dollar. This renders the savings of thousands of older people worthless, leaving them unable to buy food and other essential goods.

Ghana: Pension Reform in Ghana: Special Pension Scheme for the Informal Sector (May 4, 2009)
The Presidential Commission on Pensions examined the current pension schemes and made recommendations to ensure stability, an increasing need as traditional ways of caring for the old are breaking down. The Commission noted the absence of any formal pension system for the informal sector. The PCP recommended creating a new contributory three-tier pension system comprising two mandatory schemes and a voluntary scheme.

Kenya: Millions Faced With Poverty Trap Upon Retirement (April 13, 2009)
Kenya faces extreme levels of old age poverty in the next 20 years as the number of people above 60 years of age doubles with no corresponding increase in pension coverage. Kenya’s pension coverage is one of the lowest in the world, with less than 15% of its 12 million workers covered, a poor comparison to the global average of 30%.

France: Enjoying One’s Retirement Abroad…Why not in Mauritius? (April 9, 2009) 
(Article in French)
French retirees are now settling abroad permanently (+13% in five years) and the numbers continue to go up. With a milder climate and lower living costs, seniors do not hesitate to cross seas and oceans to live in places where daily life is more pleasant, especially in North Africa or to more remote countries in Southeast Asia. Due to this tendency, Mauritius is now trying to attract French seniors to its own tropical paradise. 

Nigeria: Strict Regulations, Safety of Pension Funds (April 8, 2009)
The National Pension Commission (PenCom), normally criticized for its strict regulations, is partly vindicated because through its strict regulations on investments. PenCom successfully prevented enormous losses to the nation’s pension funds in the wake of the financial crisis. This is in part due to passage of the Pension Reform Act of 2004. Nigeria must continue to search for ways to strengthen its system; particularly they must move to stabilize the investments of those already retired.

Kenya: Secure Old Age Now (March 28, 2009)
Kenya recently extended its retirement age from 55 to 60 years, which means a new lease on life as retirement often translates into death in Kenya. Years of economic difficulties have crippled the country’s pension system. It is claimed that civil servants regularly pillage state resources and the treasury, using taxpayers’ money that otherwise could be used for pensions to pay for shortages.

Mauritius: Retirement Age: Explanations Are Always Necessary (March 18, 2009)
(Article in French)
Civil servants and workers from the private sector have gathered again to try to explain why the the legal retirement age of 65 years should be postponed. The Government wants to encourage employees to retire later to allow the National Pension Fund (NPF) to be profitable in the long run, because life expectancy has become longer in Mauritius. Today there is quite a lot of confusion, and affected persons deserve clarification. In the pension area, formulas are used. When there is change, they become really complex, and that is why a pedagogical approach is so important. The current reforms will have a major impact on strategic decisions made at the human resources level within companies, whatever their size or sector of activity. 

Ivory Coast : Legal Retirement Age : Workers Adjudicate on Advantages and Drawbacks of the Reform. Interview of  H. Oulaye (March 3, 2009)
(Article in French)
The interviewee explains the different reasons why the civil servants’ legal age for retirement was extended to 57 years old. In his country, as in many African states, some people are afraid of retirement because they have not prepared it. The proposed change will not lower retirees’ incomes so the reform is not necessarily seen as bad. The decree is supposed to provide a transiton to the eventual retirement age of 60 years. One of the pernicious effects of this measure is that it does not encourage hiring of young graduates. Rather, it leads to maintaining some categories of workers to their positions. 

Uganda: Helping Aged Persons in Uganda (January 29, 2009)
An alarming number of Ugandans, over 90%, will continue to work far into old age due to a severe lack of financial protection for older persons. Although Uganda does have a pension system, even those citizens who can make claims, have problems getting assistance. The government is taking steps to change the current situation, for example, adding seats to Parliament specifically for older persons. Leaders are debating the pro’s and con’s of a universal social pension system. 

China: Rural Public Pension Insurance Program is Going to be Launched in Guangdong Province This Year and is Projected to Reach Full Coverage Within Three Years (June 17, 2009)
(Article in Chinese)
Reports from Guangdong Provincial Department of Labor and Social Security indicated that the Rural Public Pension Insurance Program being launched this year will have 1.4 million enrollees. Several pilot programs have already been conducted successfully. According to the plan, the project will reach full coverage within the following three years. 

Vietnam: New Rules Are Necessary for Older Persons in Vietnam (June 8, 2009)
(Article in French)
During the 5th session of the General Assembly in Hanoi, deputies discussed new regulations for older persons, including women’s retirement age, special prices for medicines and reduced transportation fares. Old people could also receive some advantages in cultural or artistic activities. This session enlightened the very important role of family to take care of older persons before asking for help from social organizations.

China:  President Urges Promotion of the Social Security System (May 25, 2009)
(Article in Arabic)
Chinese President Hu Jintao wants to accelerate social security system coverage in both urban and rural areas. Referring to a study conducted by the Political Bureau of the Central Committee of the Communist Party, he stated that the social security system should be built on the principle of broad coverage and multi-layered and sustainable growth in order to meet the basic needs of the people. He also stated that the social security system should focus on improving the service of old-age pensioners and their access to primary medical insurance, attempting to address the older population, particularly those in rural communities.

Australia: Australia Raises Pension Age, Tax Rates for Rich Retirees (May 12, 2009)
By 2023, the pension age in Australia will increase from age 65 to 67 years. Reductions will be made to retirement tax benefits for higher paid workers and matching contributions to low-middle income earners will terminate. Also, the government will be cutting tax breaks for workers saving for retirement. As a result of all the changes there will be an increase in the single-aged weekly pension. Changes are required since Australia has the fourth highest life expectancy in the world, placing a stronger demand on the pension system.

China: Age Wave to Come Crashing Soon Over China’s Economy (April 27, 2009)
The main concern of China’s policymakers should be the pension system with its immense unfunded liabilities, empty accounts and low coverage, especially if UN predictions are correct. By 2050, 438 million Chinese citizens will be over the age of 60. In addition, the unbalanced sex ratio will prove to be a challenge when China builds old age income support financed out of general tax revenues and creates a national, fully portable system of funded retirement accounts. Currently, China is not making enough reforms for the trials ahead.

Thailand: Thailand Government Gives Pension Stipend to Old People To Deal With Economic Crisis (March 24, 2009)
(Article in Chinese)
The Thailand government initiated a temporary social pension aid measure, giving a pension stipend to people over 60 years old who have no form of pension. During his visit to local provinces, Thailand’s Prime Minister said that all citizens above 60 years old are eligible to receive the stipend except those who have already been granted other government subsidies.

China: A Critical Point in Handling Aging for China (March 17, 2009)
(Article in Chinese)
The Deputy to the National People’s Congress, Chair of Chinese Population Development and Research Center, recently said that now is a critical time for China to handle its aging issue. Unlike developed countries, the arrival of an aging society in a still quite undeveloped economy has made it more difficult for China to establish a comprehensive social security system. There is an increasing risk for the elderly. The number of people over 80 years old in China is growing by 3.7% annually and is expected to reach 22 million by year 2020 and 83 million by year 2050.

China: Nearly 17,000 Rural Old People in Gui Yang City Receive Pensions Every Month (March 12, 2009)
(Article in Chinese)
By the end of February 2009, the number of rural people participating in the rural old-age insurance program in Gui Yang has reached 46,400 persons.. Some 16,914 people above 60 years old have started receiving monthly pension. Gui Yang City has also made efforts to expand coverage of old-age insurance and medical insurance for urban workers to migrant rural workers in the city. By January 2009, some 39,000 employees have signed up for old-age insurance.

China: Prime Minister Promises Retired People’s Pension Increase (March 6, 2009)
(Article in Chinese)
Prime Minister Wen Jiabao recently said that this year and next year the government will further increase retired people’s pensions by 10% per capita per year. The Chinese central government budget will allocate 293 billion yuan to fund the social security program, 43.9 billion more than last year, an increase of 17.6%.

Australia: Elderly Poor are the Victims of an Unfair pension System (March 3, 2009)
The pension system was originally intended to be a retirement safety net against poverty for those who could not afford to save, but now everyone seems to feel entitled to a pension despite their own financial security. After studying the Australian pension system, findings showed that 14% of age pension recipients actually live in the wealthiest 25% of households in the country, 6.5% of recipients pay more than half their income on rent, and that single pensioners and renters are more likely to live in poverty.

China: 40 RMB a Day Rewards A Well-Secured Old Life (February 24, 2009)
(Article in Chinese)
Life insurance expert suggests that young Chinese start putting aside a certain amount of money for old age by purchasing proper commercial insurance or financial plans. Forty RMB everyday will accumulate into a big amount in twenty years. This investment will be rewarded by a decent income to secure old age. A report from the World Bank shows that by 2019 the social old-life pension account in China may be short by RMB 6,000 billion, and RMB 10,000 billion by 2075.

Australia: Avoiding Austerity-Caring for our Aged (February 10, 2009)
Not immune to the global financial crisis and recession that is felt by everyone throughout the world, Australia must take immediate steps to ensure that its most vulnerable group, older persons, are cared for properly. The article highlights different aspects to consider when developing a plan, including allowing a choice between work or retirement, improving the pension system and looking at the overall quality of life for the aging population. The conclusion reiterates the necessity for serious action. 

Korea: More Seniors to Get Pension Through Reverse Mortgage (January 27, 2009)
Given the current economic recession, the Financial Services Commission plans on further developing a housing-based pension plan. The FSC is considering easing conditions to join, lowering the minimum age requirements and increasing the total amount a subscriber can receive. At this moment, on average, a subscriber receives 945,000 won per month, about 76% of their total monthly income. 

Taiwan: New Elderly Care Program Planned by Government (January 22, 2009)
The Taiwanese government announced plans for an insurance program for long-term care of senior citizens as early as next year. The decision came after the Council of Economic Planning and Development (CEPD) expressed concern at the expected 22.5 percent increase in the elderly population within the next 20 years. The CEPD is responsible for drafting a plan by next year to cover a wide range of services, including basic food, housing, and financial planning.

Asia : Pension System : Asian States will have to reform… (January 21, 2009)
(Article in French)
A recent join report from the OECD and the World Bank highlights that it is urgent to reform pension systems in most of Asian countries. The fast population’s ageing foreseeable for the two decades to come demands to think solutions ahead. Formal pension systems in Asia are limited and pension savings are not sufficient to provide for people old age. Among the different recommendations, the report suggests that pensions should be indexed and the cost of living. 

Return to Top of Page

Europe and Central Asia

Reports | Articles 

Reports

Italy: What Explains Fertility? Evidence from Italian Pension Reforms (May 2009)
Why do people have children in rich societies? This paper proposes an empirical test of two alternative theories: children as “consumption” vs. “investment” good. The study uses as a natural experiment the Italian pension reforms of the 90s that introduced a clear discontinuity in treatment between workers. This policy experiment is particularly well suited, since the “consumption” motive predicts lower future pensions to reduce fertility, while the “old-age security” to increase it. The empirical analysis identifies a clear and robust positive effect of less generous future pensions on post-reform fertility. These findings are consistent with “old-age security” even for contemporary fertility. 

United Kingdom: Population Ageing: Crisis or Opportunity? (November 2008)
The authors of this paper discuss the economics of supporting an aging population in the United Kingdom and in particular how pensioners’ incomes might best be supported without significantly reducing the income and capital of the remainder of the population. The increase in life expectancy, changes in family formation and dissolution, projected changes in mortality, fertility and migration, and the crucial United Kingdom housing market are all critical elements of the discussion.

Articles

France: The Government Finances Early Retirement Ten Times Less Than Ten Years Ago (June 26, 2009)
(Article in French)
According to a survey from the Labor Department, this trend began in 2002 with a very slight increase of people over 55 years old receiving unemployment benefits. Since the beginning of the current economic crisis, several trade unions have pleaded for a return to early retirement with new formats designed for current needs.

France: The Revolution or the War of Ages (June 25, 2009)
(Article in French)
In 2008, the Foundation for Political Innovation asked young people from different countries this brutal question: “Are you willing to pay enough taxes to pay elders pensions?” Sixty-three percent of young Chinese replied yes, 56% young Russians and 50% young Indians replied positively, whereas in France only 11% said yes. Such a rate shows how the pension system is viewed by young people in France and it shows that neither the 1993 nor the 2003 reforms have enhanced the system. Confronted by the same issue, other countries have decided to extend the length of the professional work life, whereas in France it seems that no serious solution has been found yet.

Latvia: Pensioners Oppose Pension Age Increase (June 20, 2009)
(Article in Russian)
Latvian Pension Federation leader Aina Verze categorically opposes a pension age increase by the year 2012. While 65 years is an average pension age in most European countries, Latvia is not ready for this change due to the country's high unemployment rate and low average life expectancy. However, pension age may be increased in the future, but “very gradually,” said Verze.

France: National Public Pension Fund Shrank by 20% in 2008 (June 19, 2009)
(Article in Chinese)
Last September the financial crisis spread to Europe, making the financial market there extremely unstable. An annual report released on June 18 stated that in France the public pension fund dropped from 34.5 billion euros at the end of 2007 to 27.7 billion euros at the end of 2008, shrinking a total of 20%.

France: Narbonnais: A CGT Union for Nursing Homes (June 18, 2009)
(Article in French)
A union, currently with 30 members, wants to unite all nursing homes and personnel who are part of care-giving for older people in Narbonnais in southern France. Organizing the union played a necessary role in creating awareness of the working conditions and needed controls that came to light during testimonials given at the union meeting. There are about 20 facilities for older people in the region. 

Latvia: Latvian Government Cuts Pensions to Appease Leaders (June 14, 2009)
Suffering from a recession, the Latvian government agreed to controversial measures including cuts to state pensions. Reduction in pension funding represents an attempt to receive money from international lenders. The state pension will be reduced by 10% for most pensioners, but those still at work will see their allowances slashed by 70%. 

United Kingdom: Worlds Apart (June 11, 2009) 
Britain’s private-sector pension plan holders are facing potential changes in their provisions. Big companies are putting an end to final-salary schemes, and the British company Barclays is even planning to close the bank’s current scheme for existing members. By comparison, public schemes are collectively far more generous than those available to private-sector workers. With the gap between private and public pensions widening, Britain has begun seeking ways to diminish the disparity.

France: Label Vie: Towards a New Vision of Senior Insurance... (May 26, 2009)
(Article in French)
The insurance group, Prevoir, just launched a new product named “Label Vie.” An innovative offer for people between 55 and 75 years old, the insurance company will offer assistance to elders, not simply financial service. Today, in partnership with Mondial Assistance (a private insurance and assistance company), Prevoir Autonomie Bien Etre provides access to doctors and nurses to specific advice about healthy behaviors that their patients should adopt. Advice, regular check-ups, and answers to health questions are some of the different actions made in order to keep the good health of the clients.

United Kingdom: Chancellor’s State Pension Guarantee Is “Virtually Worthless” (May 14, 2009)
The National Pensioners Convention (NPC) calculates that the proposed 2.5% increase in state pensions will make little difference in rising poverty among pensioners. With millions of older people having lost money from their savings, one in four pensioners is still living in poverty. Every day last year, 822 pensioners fell below the poverty line.

France: Computer Bug: 25 Years of Errors of Insurance Benefits for Retirees (May 12, 2009)
(Article in French)
A computer program error discovered three months ago resulted in an over estimation of validated semesters of unemployment since 1984—a period of 25 years! One million employees may be affected. The estimated amount for the National Old Age Public Insurance Fund would be approximately 300 million Euros. 

France: The Retirees From the CFDT Are Worried At the Hands of Actual Inequities (May 11, 2009)
(Article in French) 
Meeting in a national assembly from May 5-7, 2009, the leaders of the Confederation Union (CFDT) for retirees stated their most important pressing concerns. They worry about pension cuts and the lack of doctors and healthcare in rural areas. They are asking for an increase in the minimum pension allocated to poor older persons. They called on all retirees to participate in days of mobilization and demonstrations on June 13, when decisions will be announced.

Germany: As Elections Near, Germany Courts Its Pensioners (May 7, 2009)
Two of the largest political parties in Germany have united to protect pension benefits. The German cabinet voted on Wednesday to prevent the reduction of pensions. In addition, several weeks ago they agreed to increase benefits, demonstrating the growing influence of pensioners as senior voters. The protection of benefits is coming despite the economic downturn due to the necessity to protect 20.2 million pensioners who make up close to a quarter of the German population.

UK: Britons Rely on Inheritance to Help Fund Retirement (May 5, 2009)
Nearly one in three British adults is planning to fund their retirement with an inheritance that could easily fail to materialize. More than half admit being ill prepared for retirement. One in three expect to solve the problem by inheriting money and property from their parents and other relatives. Despite falling house prices and a turbulent stock market, a majority of adults are unconcerned about the recession’s effect on their retirement savings or potential inheritance; they are unaware of the value of the estate being left behind. However, increased life expectancy is producing many families with two generations of retirees. Despite the hope that an inheritance will fund retirement years, researchers show this can no longer be relied upon. With more than half of Britons admitting to not saving enough for their retirement, their future care appears in real jeopardy.

Italy: Can Migrants Save Italy’s Older Population? (May 4, 2009)
(Article in Arabic)
New studies show that an influx of immigrant labor is helping Italy address concerns relating to an aging population. By boosting GDP, this migrant population also improves the situation of pensioners. However, as the immigrant population ages, the Italian government will need to find a balance between internal and external forces for the improvement and development of the pension system, for example, by providing more job opportunities for the category of "young senior citizens" between the ages of 55 and 65 years.

France: Retirement: Majority of French People Worried (April 29, 2009)
(Article in French)
According to the French Observatory for Pensions, 67% of French people are worried about their standard of living once they retire, and 75% of them worry about the level of pension they will receive. Elders are doubtful about their capacity to live independently (54%) and about their health and access to care (58%). For French people to have a secure retirement they need a mix of several components: You should own your own home (49%), have saved money (34%) and know what kind of pension you are entitled to (27%). The fact of having contributed to a system of complementary pension schemes remains an important point (23%) as well as the fight against loneliness (22%). Being surrounded by your relatives when you get retired also appears essential.

Russia: Money for Seniors (April 28, 2009)
(Article in Russian)
More than $45.5 billion will be spent on elimination of poverty among seniors in 2010 in Russia. The Minister of Finance calls it “a global and a worthwhile step.” The government also plans to increase pensions by 9% so that old-age pensions will not be below a pensioner's minimal subsistence level starting from the year 2010. 

United Kingdom: Without Urgent Action on Pensions, Old Age Will Be something to Fear (April 25, 2009)
Chancellor Alistair Darling's Budget delivered yet another blow to the British ailing pensions system, according to Ros Altmann, a former pensions adviser to the Labour Government. According to Altmann, the measures will “damage the pensions of top earners, while doing nothing to help other people's pensions at all.” Until about 10 years ago, the UK had more money in private pensions than the rest of Europe put together. Today the chances of a decent retirement are very low and policy-makers have remained in denial about the pension crisis.

France: Retirement Abroad: How to Prepare for Those Leaving? (April 24, 2009)
(Article in French)
A lot of preparation is needed when retirees decide to leave France to enjoy their retirement in the sun. It is easy for a retiree to receive retirement pensions in the new country if he or she has signed a social security convention with France. If there is no convention between the new country and France, the retiree will be taxed in both countries. 

Spain: The Crisis Forced Europeans to Work Longer (April 24, 2009) 
(Article in Spanish)
An ongoing debate about the possibility of increasing the age for retirement is not only occurring in Spain but in many other countries. This article summarizes the key debates and changes that are taking place around the world. Kenya is increasing the retirement age to 55 years, making it a country with one of the earliest retirement ages, and Russia is debating unifying the retirement age of both sexes in addition to raising it. 

Scotland: Call Over Support for the Dying (April 16, 2009)
Many health care homes fall short of providing palliative and end of life support, essential for patients with cancer and dementia, according to a recent authors of a report in Scotland. Apparently, more than half of the homes failed to train staff on how to deal with sensitive issues surrounding death or dying, including the last wishes of residents.

France: Pensions: What Changed on April 1 (April 2, 2009)
(Article in French)
Brice Hortefeux, Secretary of Work and Solidarity, and Eric Woerth, Secretary of Budget, have just confirmed a different Social Security pension plan to implement a 1% pension increase beginning April 1. Pensions had already increased by 0.8% last September 1, to take into consideration high inflation in 2008. Basic pensions will be increased by 1.3% on average every year at a time when projected inflation is 0.4% in 2009. What is more, the Government has taken unprecedented measures to increase low pensions in conformity with presidential commitments. The article focuses on “The Older Persons Solidarity Benefit” (formerly called “Minimum Old Age Benefit”), its components, the people concerned and the resources necessary for its implementation. 

GIP Pension Info: 3 Million Social Insurance Contributors and Four Generations Informed (April 2, 2009)
(Article in French)
Almost four years after the beginning of coordination by the GIP Info Pension, a new step has been taken to assure the right to information from insurance contributors about their pension as set by the August 21, 2003 law. In 2008, mandatory pension organizations sent three million people personalized documents of information, consolidating the data held by each of them. Surveys of beneficiaries showed a very high satisfaction with this initiative, the content of the documents and the warm welcome given by pension organizations when contacted. 

Finland: Finland Encourages Late Retirement (March 24, 2009)
(Article in Chinese)
The government of Finland is changing its retirement and pension system that allows government officers to retire at between 63 and 68 years old. Those who continue working after 63 years of age can receive more pension support. The new system encourages people to work longer in order to alleviate the current labor shortage. So far, the speed of ageing in Finland has been faster than in other countries of the European Union.

France: Complementary Pension : Postponed to 2010 (March 24, 2009)
(Article in French)
Salaried employees who are about to retire may be relieved that rules that govern the pensions of salaried employees from the private sector and of senior executives and middle management will be maintained until 2010, following an agreement between unions and employers. Nonetheless, the following generations may be worried about the durability of complementary pensions. The issue of money in reserve has to be tackled. Unions and management demand that the government balance the budget and re-examine a number of parameters such as the legal age of retirement, the term and level for contributions and pensions. 

Russia: Care of Seniors Stimulates Economic Growth (March 22, 2009)
(Article in Russian)
International Forum “Older Generation” was held in St. Petersburg this week. The forum attracted over 300 delegates including researchers in gerontology and elder care from all over the world. Representatives of the Russia's Pension Fund emphasized that care of seniors in times of the economic crisis is a national priority and the government will continue to increase pensions in 2009. 

France: Half of French People Believe They Will Have to Keep Working After 60 (March 10, 2009)
(Article in French)
Forty-seven percent of French people wish they could retire at 60 years of age, but they are well aware that it may not be feasible. Thus, 49% are ready to work until 62. Their concern and anxiety are obvious, and 59% admit they are really worried. They are more and more required to save money to finance their old age. A positive point is that French people have a better visibility of what their future pension will be. On the whole, the younger generations have understood that they will have to provide their own retirement. As far as the pension system is concerned, most people (52%) believe it must be mixed, based on both distribution and capitalization. 

France: Pension: The Increase Would be Limited to 1% (March 10, 2009)
(Article in French)
A 2.1% raise in pensions was announced at the beginning of the year, but the Government revised it to only 1%. The explanation is quite simple: the mechanical increase of pensions follows the changed in prices. The downward annual inflation is set to 0.4% instead of the 1.5% initially foreseen. Nonetheless, this rate has been increased to 0.6% and there might be a helping hand by the State. Confronted about the deception of retired people’s associations, the government invoked many arguments, and highlighted the fact that many measures have already been taken or are on the agenda in favor of retired persons. The recent hike in pensions, the increase of the minimum elderly benefit, and the improvement of agricultural pensions are quoted as examples.

Sweden: Swedish Women Stuck in Pension Shortage (March 9, 2009)
(Article in Chinese)
Swedish women working half time are more and more worried about the shortage of pensions in their retirement. Although 70% of Swedish women go to work, a majority of them only work a half-day. Not only do they earn less than full-time workers; the half-time workers can only receive accumulated retirement pensions based on earnings, reducing their potential retirement income. Many women who have long been doing half-time work will have to rely on other sources of social security funding after retirement. 

France: Women’s Retirement: What You Need to Know (March 6, 2009)
(Article in French)
Whether in the private or public sector, women employees are compensated for maternity leave or care of children. According to the gender equality principles supported by European legislation, the Pension Orientation Council (POC) has proposed modifying the increases in pensions granted to women. 

United Kingdom: Pension Savers Are Still Denied Better Income (March 3, 2009) 
Last year, the Financial Services Authority uncovered the fact that four in ten insurance companies fail to clearly reveal a pensioner’s right to look for a better pension. The FSA allowed the insurance companies six months to make improvements, but the options do not appear to be any clearer. In 2008, 63% of savers who bought annuities failed to get the best rate, which could potentially be a major income loss over the course of their lifetime. 

France: Old Age Pension and Widowhood Benefit: Less Beneficiaries in 2007 (February 25, 2009)
(Article in French)
A recent report highlights a continuation in the cuts of the number of people granted old age pensions, perhaps explained by the fact that these people may now get a “reversion pension” at a much younger age. Yet, some reforms are underway. The conditions to accept financial responsibility for premature widows will be amended by 2010. The number of old age pension beneficiaries keeps decreasing as well. This may be explained by continuous improvement of retirement systems and of social benefits rights since the 1960’s. 

Sweden: Swedish People Worry about their Pensions Partially Invested in Stock Exchange (February 23, 2009)
(Article in French)
The Swedish pension system introduced in the 1990’s has long been the object of admiration by other European countries, and especially by France. The system takes into consideration the life expectancy when people reach retirement and the level of economic growth (index on wages). Nonetheless, it raises concerns among some Swedes who witness the melting away of a part of their pension, directly funded on the Stock Exchange.

France: How Can People Think that Older Persons Can Live on 400 Euros without Struggling? (February 20, 2009)
(Article in French)
According to an association studying the needs of the elderly, people most affected by a decrease in purchasing power are older persons. Many problems surface, including the need to bring all pensions into line with the ones in metropolitan France, while there are discrepancies in living costs in other parts of the country. Further, pension payments should be made at the beginning of the month rather than mid-month because banking direct debits are done at this time. The association denounced the lack of means dedicated to old people and appealed for a social plan to assist them. ced the lack of means dedicated to old people and appealed for a social plan to assist them.

Russia: Government Raises Pensions (February 12, 2009)

(Article in Russian)
Pensions in Russia will increase by RUB 2,000 in 2010. In 2008, the average pension was increased up to RUB 4,902, exceeding the nation's minimum wage of RUB 4,600. In 2009, the government plans to increase pensions twice--in March by 8.7% and in December by 26.15%. 

France: Pensions: Minimum Average Retirement Age Will Be 62.4 years in 2020 (February, 5 2009)
(Article in French)
Today’s average retirement age is 60.5 years. This number will increase to 62.4 in 2020, according to a Center for Employment Studies’ projection. Both research studies and the pension reforms of 1993 and 2003 contributed to the change. This projection, researchers say, may well underestimate the reality since it is based on today’s behaviors. Most researchers predict a behavioral change.

Spain: Corbacho Finalizes Changes of the ERE for Persons Older than 50 Years (February 2, 2009)
(Article in Spanish)
The Ministry of Work announced that they are modifying legislation so that those older than 50 years who are in the workforce can suspend their benefits under the ERE, an employment regulatory group. If they lose their work, they can recover their benefits. When they become 61 years old, the possibility of receiving early retirement will be an option. Although the Ministry cannot end the economic crisis, they are working with the trade unions to guarantee social protection and to study ways to encourage hiring. 

France: The New Legislation on Retirees at Work is Limited (January 30, 2009)
(Article in French)
The French government passed a bill on pensions without consulting the two biggest pension funds. As a result, the new income earned by people who are entitled to retire but decide to pursue a professional activity is in fact limited to 1.6 times the minimum wage, as stipulated in previous legal arrangements. The new legislation is really helpful only to those who earn small pensions. Pension advisors recommend that clients stick to previous regulations.

Ukraine: Ukraine's Struggle to Control Payments of Wages and Pensions (January 29, 2009)
(Article in Russian) 
Ukraine's budget deficit and salary debts are growing fast. The government already has high salary debts to doctors, teachers and other state workers. In February 2009, there is a real threat of a Pension Fund deficit, says Ukraine's government. 

United Kingdom: Pensioners Support the Idea of Compulsory Insurance for Care in Old Age (January 20, 2009)
Age Concern conducted six focus groups in which it found that most seniors would prefer that the entire population share the cost of nursing home accommodation or support at home. One option is to increase the National Insurance contributions earmarked to cover support for all elders. Currently, the state only helps those with less than £22,500 in assets. Those with assets greater than the benchmark must pay for their care and often must sell their liquid assets to pay for nursing home care. 

France: Explaining the Latest Pension Reform: Having to Retire at 70 (January 9, 2009)
(Article in French)
In 2010, French employers will have to allow their employees over 70 (instead of 60) to retire. French employees who contributed long enough are still allowed to retire when they reach the age of 60. From 65 onwards, those who have not contributed will be able to leave their jobs without penalties. The rules will be different in the public sector. A period of transition will be observed in 2009.

Russia: What Will Happen to Pensions in 2009? (January 8, 2009)
(Article in Russian)
Pensions in Russia will be increased twice this year despite the financial crisis sweeping the country. The government has approved a budget allocating a pension increase by 8.69% in March and by 26.15% in December 2009.

Italy: Anger Mounts Over Italian Pension Plan (January 5, 2009)
Italy privatized part of its pension plan. The program was intended to help the government meet its pension obligations and lure more people into investment funds. However, the average return for private, non-union pension plans fell from an increase of 2.6% to a decline of 24%.

Return to Top of Page

Middle East & North Africa

Lebanon: Retirees Deprived of the Differences (June 19, 2009)
(Article in Arabic)
Hundreds of retirees are outraged at the Lebanese government. A law passed in 1998 to increase the salaries of those in the public sector was supposed to take effect in 1996. However, it actually took effect in 1999, leaving those who retired in 1999 without the increase in pension they were entitled to after 1996. To solve the problem, Act 717, mandating the provision of differences for the benefit of retirees, was passed. This prompted many individuals to contact their banks, but to no avail. One such individual quoted in the article felt that what is being done by the Ministry of Finance represents an attempt to deprive a large group of retirees access to what is rightfully theirs. He remains frustrated by the lack of structure in the system that allows for these retirees to slip through the cracks.

Morocco: The Elderly in Morocco, From Caring Families to Isolation (June 12, 2009)
The number of older people in Morocco is growing rapidly. Expected to rise from 2.5 million to 8 million people by 2030, senior citizens will make up 15% of the Moroccan population. Many of Morocco's elderly find themselves alone and without help, as just 16% receive pensions. The remainder must rely on the state or their families to avoid being homeless. 

Bahrain: Pensioners Angry with Parliament for Failing to Adequately Address their Needs (May 21, 2009)
(Article in Arabic)
Pensioners in Bahrain recently erupted in protest against the parliament for failing to implement improvements in the pension system for the majority. Making matters worse, they accused members of parliament of focusing only on government salaries and benefits in their sessions and failing to acknowledge the rights and benefits of those who put them in office. Further, a huge disparity exists in the size of the pensions between members of the public and private sectors. While the pensions of some citizens do not exceed 150 dinars per month, members of parliament and of the Shura Council of Representatives have fixed monthly pensions of 1,250 dinars.

Iraq: Inflation, Oil, and Their Adverse Effects on Pensioners (May 18, 2009)
(Article in Arabic)
Hyperinflation and rising living costs in Iraq have made it difficult or impossible for many pensioners to achieve the minimum requirements for daily life. However, the solution cannot be found in simply raising pensions, as the entire pension plan needs reform. The current system does not account for disparities in pensions relating to years spent in education, early retirement due to disabilities and pre-retirement salary cuts. A lack of wealth diversity due to oil dependency affects pensioners a great deal. Those who do not receive oil revenues are left paying the price of the inflation caused by soaring oil prices. 

Saudi Arabia:  Social Insurance…Improving the Situation of Pensioners (April 13, 2009)
(Article in Arabic)
The Saudi Shura Council recently agreed to increase retiree pensions as well as raise their social security benefits. In the past few years, Saudi Arabia has witnessed a substantial erosion of the middle class largely due to high inflation rates and rising costs of living for retirees. With fixed incomes, retirees cannot improve their living situation, jeopardizing not only their dependents but also the future of Saudi society. The council warns that this threat will remain until pensions begin to match inflation rates. 

Jordan:  Older People in Jordan Take Time to Invest (April 12, 2009)
(Article in Arabic)
Studies show that older retirees’ participation in the Jordanian stock market generates economic growth, increasing the rate of daily circulation in the market. These older men represent “small” investors who, because they are no longer working, have time to research and "play" the market, splitting shares between many companies in order to generate a larger profit. Though this provides a form of entertainment for older people, it can be a risky one, as they are investing their retirement funds in a gamble that does not always pay off.

Jordan:  Raising Retirees’ Pensions in a Worsening Economy (April 8, 2009)
(Article in Arabic)
During their meeting last week, the Jordanian House of Representatives adopted a measure to establish a parliamentary committee to study the situation of retirees. This committee called for a 15% increase in the pensions of retired people in the face of an ever-worsening economic situation. They further recommended the issuance of a special tariff through which retirees can take advantage of specific privileges and fee reductions for many government goods and services. The consolidation of pension benefits will contribute enormously to the living situation of the large segment of Jordanian citizens on their way to retirement.

Algeria:  Increase in the Pension for 750.000 People (February 17, 2009)
(Article in French)
Beneficiaries of the Fixed Solidarity benefits (AFS) will get an increase in their pension that will be brought up from 1,000 to 3,000 AD a month, a measure announced by the President last September during a meeting dedicated to national solidarity. This increase will affect 400,000 older persons, especially retired people with no resources or family ties. A reorganization operation of the beneficiaries’ file of the AFS is in progress and is to be completed by next June. The AFS budget came to about 15 billion of AD in 2008 and will reach 25 billion in 2009.

Jordan:  Complaints Arise from the Refusal of Monthly Allowance to Residents of the Karak Area (February 15, 2009) 
(Article in Arabic) 
Older persons and persons with disabilities in the Karak province have complained about not receiving their monthly financial benefits. A number of the group said they "do not have access to post offices unless they own a wheelchair or walking aids or can afford rental transportation.” 

Iraq:  For the First Time in Iraq: Retirees Received Their Salaries through the Smart Card (February 9, 2009)
(Article in Arabic) 
Iraq’s financial offices provided retirees with their salaries through the Smart Card for the first time. The director of the Bank of Iraq, Abdul-Hussein al-Yasiri, announced that the banks of the sub-Rafidain and Rashid would begin the distribution of pensions by the Smart Card to banks in over ten branches spread over both sides of Rusafa and Karkh in Baghdad.

Israel:  As Economic Crisis Hits, Israel Moves to Shore Up Pension Funds (December 15, 2008) 
Israel offers to partially offset any further pension fund losses incurred by eligible workers after November 30, 2008. Among developed countries hit by the financial crisis, Israel is believed to be alone in offering such a direct bailout to retirement savers. However, the rescue may fall short of what the workers need. 

Return to Top of Page

Global

World: Recession Hurts Pension, Benefit Plans Worldwide (May 25, 2009)
Public and private pension systems in the world’s wealthiest countries are facing challenges while funds in social security institutions in emerging countries in general are performing better. These results can be attributed to better investment programs with tight regulation--such as national funds that cannot be invested abroad, investments concentrated in fixed assets or markets that are not seriously impacted by the current crisis. Experts suggest having programs that are a mixture of both public and private. 

World: The World Financial Crisis Became an Opportunity for Pension Investing Adjustments (May 7, 2009) 
(Article in Chinese)
By the end of 2008, total assets of corporate pensions all over the world decreased by 20%. Due to the relatively less risky traditional government bonds, public pensions, also known as the social security trust funds, were not affected seriously. Bing-Wen Zheng, the Director of the Latin America Research Institute of China's Academy of Social Sciences, indicated that this financial crisis will be a turning point for governments around the world to make adjustments in their social security systems. 

Report: World: OECD Fact Book 2009: Public and Private Pension Expenditures
(March 2009)
This OECD Fact Book examines the development of public and private pensions. In recent years, governments have engaged private sector management within statutory pension systems. This trend has been particularly strong in Latin America and Central and Eastern Europe, but also in OECD countries like Australia, Finland, Norway and Sweden. Fourteen of the thirty OECD countries have some form of mandatory or quasi-mandatory private pension in place. The private pension schemes are increasingly considered part of the national retirement income system rather than just a source of greater benefits for higher income employees. But is this good public policy?

Report: World: Social Security Systems around the World (January 2009)
Social security programs are increasing in numbers around the world. Initially instituted in the European and Latin American countries in the early 20th century, social security plans can now be found in both the developed and the developing countries of the world. However, as is the case in the United States, social security systems have funding problems. One problem that developed countries face is the aging of the population. There are more people retiring and drawing benefits while fewer workers are paying into the system.

Return to Top of Page