Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

Group of Thirty Report Urges Early Action by Countries to Fix Looming Pensions Crisis
  • USA - English

New G30 Report Identifies Unavoidable Policy Choices Countries Must Make to Fix Massive Lifetime Financial Security Gap


News provided by

Group of Thirty

Nov 14, 2019, 08:00 ET

Share this article

Share toX

Share this article

Share toX

Fixing the Pensions Crisis: Ensuring Lifetime Financial Security
Fixing the Pensions Crisis: Ensuring Lifetime Financial Security

LONDON, Nov. 14, 2019 /PRNewswire-PRWeb/ -- The Group of Thirty (G30) has today published the report of its Working Group on Pension Funds, "Fixing the Pensions Crisis: Ensuring Lifetime Financial Security." The report highlights the challenges of a fundamentally changed environment: a combination of rising life expectancy and decreasing birth rates in recent decades, slower economic growth, and much diminished expected returns on pension fund investments. It identifies a brewing crisis in pensions across a range of countries, with projected resources falling far short of promised retirement benefits. The report also presents the policy choices that have to be addressed so that people can be assured of adequate lifetime financial security - such that they can meet essential living expenses and maintain the standards of living they expect in their retirement years.

The G30 report estimates the gap between expected lifetime financial security benefits and what existing systems can likely provide to be $15.8 trillion by the year 2050 for the 21 countries analyzed (comprising 90 percent and 60 percent of world GDP and population respectively). This lifetime financial security gap would in fact be even larger if less optimistic assumptions for economic growth, wages, and rates of return on pension investments are made.

The G30 report highlights the basic problem: people cannot save the same amounts during their working years as they do currently, retire at the same age, and still receive the same retirement payouts as today, unless they or future generations pay additional taxes. Countries must hence employ some combination of the following policies to address the gap in a fair and sustainable manner:

1.) Increase the retirement age and strengthen employer responsibility for employing older workers and enhancing their productivity;

2.) Increase private savings and/or taxation to support public pensions; and

3.) Re-calibrate income replacement rates in retirement, while protecting replacement rates for the poor.

"Countries across the globe face a mounting challenge: how to offer adequate financial security for retirees, today and sustainably into the future. If public policies and individual behaviors do not change, many countries' pension systems will face a severe crisis, threatening either unaffordable public expenditure pressures or inadequate incomes for retirees," said Chair of the G30 Working Group on Pension Funds Lord Adair Turner, Senior Fellow at the Institute for New Economic Thinking and former Chairman of the UK's Financial Services Authority. "Workers and retirees are living longer today. We need to make crucial adjustments to ensure lifetime financial security for retirees, both now and in the future." He continued: "At the minimum, we recommend countries gradually raise retirement ages in line with the proportional principle, in order to keep stable the proportions of adult life spent in work and in retirement."

The report emphasizes that reforms to minimize investment management costs must be a priority; otherwise these will reduce returns to pension savers and leave them poorer in retirement. It also encourages policymakers to consider structural changes to pension systems, to better balance the distribution of risks between individuals and scheme sponsors. Such changes include:

  • Allowing the pensionable age in traditional 'pay-as-you-go' or Defined Benefit (DB) systems to rise automatically with increases in life expectancy, to enhance sustainability across generations;
  • Developing hybrid Defined Contribution schemes that reduce the investment risks faced by individuals and hence provide more assurance of adequate retirement income; and
  • Complementing Defined Contribution schemes with adequate public safety nets to ensure that no one falls into poverty because they are unable to save.

The report also urges politicians and policymakers to design mechanisms that can better inform public debate about the trade-offs and choices that have to be made, better communicate the costs of inaction, and build consensus around workable combinations of policy solutions.

"Kicking the can down the road will only make the problems larger and impose an inequitable burden on the next generation," said G30 Chairman Tharman Shanmugaratnam, Senior Minister and Coordinating Minister for Social Policies in Singapore. He continued: "Longer working careers are unavoidable, and they must be productive years. But changes to pension schemes are needed too. The shift from 'pay-as-you-go' or defined benefit schemes to defined contribution has improved financial sustainability, but also shifted risk and responsibility from employers and governments to individuals. It has left individuals worse off in many places. Reforms to defined contribution should enable individuals to benefit from collective investment management, at low cost, and not have their retirement savings hostage to market cycles as much as they are today."

"We are in a global environment of unprecedented low or negative interest rates, with long-term implications on retirement investment funds," said G30 Working Group on Pension Funds Steering Committee Member Gerd Häusler, Member of the Supervisory Board of Munich Reinsurance and former Financial Counselor and Director of the International Monetary Fund. He continued: "Against this backdrop and the already high tax rates and soaring real estate prices in a number of European countries we all are faced with quite unpleasant realities. Any combination of measures will have to be tilted towards raising the retirement age, however gradually but consistently. Leaders of all countries, supported by experts, must explain this difficult message to voters over and over again: The need for gradual changes to our pensions systems in order to ensure future retirees are provided for at an adequate level, without overburdening our children and grandchildren. As a first measure, my own country included, we must stop going in the wrong direction for whatever justification. All must give some ground, including the older generations, in order to ensure the sustainability of the pensions systems as a whole."

Lord Turner, Senior Minister Tharman, and Mr. Häusler led the Steering Committee of the G30 Working Group on Pension Funds, supported by six working group members. The research process was supported by Project Director Colin Brereton, Adviser Miles Kennedy, and PwC.

The Group of Thirty is an independent global body comprised of senior representatives of the public and private sectors and academia. The Group aims to deepen understanding of international economic and financial issues, to explore the international repercussions of decisions taken in the public and private sectors, and to examine the choices available to market practitioners and to policymakers. The Group is led by Jacob A. Frenkel, Chairman of the Board of Trustees, and Tharman Shanmugaratnam, Chairman of the Group.

G30 Media Briefing: The G30 will convene a live webcast press conference with Adair Turner and Gerd Häusler on November 14, 2019, at 1:00pm GMT (2:00pm CET, 8:00am EST, 9:00pm SGT). After delivering opening remarks on specific topics addressed in the G30 "Fixing the Pensions Crisis: Ensuring Lifetime Financial Security" report, Lord Turner and Mr. Häusler will answer questions.

A recording of this briefing can be found at:
https://event.on24.com/wcc/r/1832487/1C6DF7377477EAE2AEB3CFA40C36CDDF.

A copy of the report can be found on the G30 website: http://www.group30.org.

SOURCE Group of Thirty

Related Links

http://www.group30.org

Modal title

Full Press Release
View PDF
Full Press Release
Full Press Release

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.