GFIA Global Federation of Insurance Associations

Governments Face Rising Challenges on Retirement Security

This unprecedented demographic change leads to a widening gap between the social security contributions collected and the pension payments made, thus increasing the burden on public finances. Most countries have already introduced reforms to increase resilience of public pensions, but these have generally resulted in lower expected pension benefits and/or a higher retirement age. In turn, this entails a significant risk of old-age poverty.

In addition, pension adequacy is also a particular concern for certain categories of the population, such as the rising number of workers in non-standard forms of employment, who are likely to have more limited access to public pension and social protection systems.

GFIA therefore takes the view that that governments around the world should further foster funded pensions alongside traditional Pay-As-You-Go public pensions to ensure pensioners throughout the world benefit from adequate pension.