Pay-as-you-go public pension programs are the backbone of retirement security in most industrialized countries. For the first half-century following their introduction in the major democracies, they enjoyed great favor not only as social but also as economic institutions. During the past decade and a half, they have been criticized, however, as countries debate ways to improve macroeconomic performance, respond to changing populations, and reflect shifting values. This book explores the critical economic issues underlying national pension systems, including the impact of pensions on a nation's economy, the fiscal dynamics of different pension approaches, and the challenges involved in providing adequate retirement incomes. It is the first step in the search for a new consensus on public pension design and coverage. This study was commissioned by the International Social Security Association.
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