November 26, 2014

International Group Calls for More Public Pension Reform

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Since the early 1990s, public pension reforms in countries in the Organization for Economic Cooperation and Development have reduced future benefits by an average of 20 percent.

But a new O.E.C.D. report says further reforms will be necessary for these national pension programs, which under the organization's definition includes the U.S. Social Security system. These public programs are distinct from contractual, employment-based pensions.

The report bolsters the case for entitlement reform in the United States. It points out that while pension ages are rising in many countries, life expectancies are rising even faster.

In addition to further raising retirement ages, O.E.C.D. Secretary-General Angel Gurria says, countries must fight discrimination against older workers and provide more training opportunities for them. His organization also says more should be done to encourage people to invest in private pensions.