EM PENSION SYSTEMS: A GLOBAL COMPARATIVE ANALYSIS

Published 30-Oct-2017

EM economies are aging at a faster rate and are less prepared to shoulder the burdens of increased aging and longer retirement periods. We believe, therefore, that there is a strong need for a comparative analysis of EM pension systems in order to understand the challenges and opportunities they face.

In this report, we examine the pension systems of 12 EM economies: Brazil, ChileChina, ColombiaIndia, Indonesia, Republic of Korea, Mexico, Russia, Saudi ArabiaSouth Africa and Taiwan.

It is crucial for these economies to have healthy, risk-controlled pension systems that contribute to fiscal stability and sustainability, as well as underpin broad-based economic growth.

Our analysis considers each economy’s macroeconomic context and demographic characteristics, as well as its pension system’s design and fiscal impact, in a holistic way.

We draw three general conclusions:

  • Good macroeconomic management and a healthy labor force underpin all strong pension systems, and EM economies have the benefit of learning the lessons from developed market experience.
  • Despite public pensions being the anchor of any system, it would be prudent to harness private pensions to create an effective multi-pillar system.
  • Public pension wealth requires particular asset management considerations, but should nonetheless be understood in the wider context of a sovereign’s balance sheet.

Contact SSGA for a full copy of this report.

 

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.

State Street Global Advisors, One Lincoln Street, Boston, MA 02111-2900.

Hire Date
Industry Start
School
Degree