The World Bank recommends that pension systems rest on three pillars: (1) redistribution, (2) forced savings, and (3) voluntary savings. There is wide agreement that the first pillar should be provided through the State and the third largely through private markets. In contrast, provision of the...

The three pillars of a pension system are defined in varied ways. The author focuses on a definition provided by the World Bank in its 1994 Report. He argues that with a universal Pillar 1 (a flat, subsistence pension) there is no need for Pillar 2 (earnings-related pensions). Pillar 3...

Social security is increasingly debated in terms of alleged effects of public pensions on economic efficiency. The author reviews the history and rationale for public provision of retirement income, then argues that the efficiency effects of such schemes are negligible. Social security reform in...

Pension systems rest ideally on three pillars: (1) redistribution, (2) forced savings, and (3) voluntary savings. There is consensus that the first pillar is best provided through the State, the third largely through private markets. In contrast there is no consensus regarding the second pillar....