Accelerate pension reform, says OECD

(AGI) Rome, Dec 8 - The slowdown in the global economy callsfor an acceleration of pension reform, according to theOrganisation for Economic Co-operation and Development (OECD).The 2014 OECD Pensions Outlook shows that this should focusparticularly on increasing tax on pension income and raisingpension contributions, cutting or postponing pension benefitindexing and raising the legal pension age. With regard to thelatter, the report says raising pension age is desirable, butelderly workers would have to be helped to find and keep jobs.Two key factors were identified: ensuring an extended workingcareer in order to

(AGI) Rome, Dec 8 - The slowdown in the global economy callsfor an acceleration of pension reform, according to theOrganisation for Economic Co-operation and Development (OECD).The 2014 OECD Pensions Outlook shows that this should focusparticularly on increasing tax on pension income and raisingpension contributions, cutting or postponing pension benefitindexing and raising the legal pension age. With regard to thelatter, the report says raising pension age is desirable, butelderly workers would have to be helped to find and keep jobs.Two key factors were identified: ensuring an extended workingcareer in order to earn a decent pension on retirement andachieving a more equitable generational distribution of thefinancial pension burden. Presenting the report, OECDSecretary-General Angel Gurria said it was encouraging to seethe progress made over the last few years in rendering pensionsystems more sustainable and adequate. However, rapiddemographic change and the economic slowdown accentuated theneed to bring in reforms. The message that working longer andcontributing more were the only way to achieve a decent incomein retirement had to be got across. Public and private pensionsystems needed to take account of the crisis, and therefore theglobal economic slowdown, as well as the ageing population. . .