Pension Schemes in the European Union: Challenges and Implications from Macroeconomic and Financial Stability Perspectives

By Antonio Sánchez Serrano,Tuomas Peltonen Pension schemes have a significant influence on the saving and consumption decisions of households. Similarly, contributions to pension arrangements are substantial expenditures for national governments and also for corporations, depending on the prevailing pension system. Beyond this, pension schemes play an important role in the economy, channelling savings into investments through capital markets. However, demographic factors and the macroeconomic environment (low interest rates, low growth and low productivity) are raising concerns about the sustainability...