Lessons From Italy: A Good Pension System Needs an Effective Broader Social Policy Framework

摘要

Public policies in advanced economies should target different needs. Welfare policies should focus on preventing poverty; progressive taxation and the provision of high-quality public services should concentrate on reducing inequalities; labour market policies should aim to create fair wage employment opportunities (including for older workers) and facilitating job-to-job transitions. Contribution-based pension systems should focus on transferring workers' income across time and insuring against longevity risk in an efficient and transparent way, without the costs and the risks connected with financial markets (which, incidentally, are higher for poor people). This goal should be achieved without exacerbating existing inequalities and without distorting the incentives to work and save. In the context of an ageing population, if one wants to preserve financial stability while guaranteeing acceptable replacement ratios, a longer working life combined with more diversified income for pensioners is necessary. Along these dimensions, well-designed NDC schemes are suitable solutions.