Connect with us

Newsdesk

Pensions reforms have slowed in OECD countries but need to continue

Newsroom

Published

on

Further reforms are needed across OECD countries to mitigate the impact of population ageing, increasing inequality among the elderly and the changing nature of work, according to a new OECD report.

Pensions at a Glance 2017 says that public spending on pensions for the OECD as a whole has risen by about 1.5% of GDP since 2000. However, the pace of spending growth is projected to slow substantially. 

 At the same time, recent reforms will lower the incomes of many future pensioners. People will live longer and to ensure a decent pension would have to postpone the age of retirement.

“The challenges of financial sustainability and pension adequacy mean that bold action from governments is still needed,” said OECD Secretary-General Angel Gurría. “The world of work is changing fast and policy makers must ensure that decisions made today take this into account and our pension and social protection systems do not leave anyone behind in retirement.”

 The net replacement rate from mandatory pension schemes for full-career average-wage earners entering the labour market today is equal to 63% on average in OECD countries, ranging from 29% in the United Kingdom to 102% in Turkey. On average, replacement rates for low-income earners are 10 points higher and range from under 40% in Mexico and Poland, to more than 100% in Denmark, Israel and the Netherlands.

 Over the past two years, one-third of OECD countries changed contribution levels, another third modified benefit levels for all or some retirees and three countries legislated new measures to increase the statutory retirement age. Under legislation currently in place, by 2060 the normal retirement age will increase in roughly half of the OECD countries, by 1.5 years for men and 2.1 years for women on average, reaching just under 66 years. The future retirement age will range from 60 years in Luxembourg, Slovenia and Turkey to 74 in Denmark, according to the latest estimations.

 The projected increase in retirement ages will be exceeded, however, by expected advances in longevity, meaning that the time people spend in retirement will increase relative to people’s working lives. Employment at older ages will need to increase further to ensure adequate pensions for many people, according to the report.

 Pensions at a Glance 2017 also looks at ways countries can meet the growing calls for more flexible retirement options. Rigidly set retirement ages might not be beneficial for society as a whole. Currently, only around 10% of Europeans aged 60-69 combine work and pensions. Of those that do work beyond the age of 65, half work part-time — a share that has been stable since the 1990s. Several countries including Australia, the Czech Republic, France and the Netherlands allow for early partial-retirement schemes.

 Obstacles to combining work and pensions after the official retirement age exist, for example through earnings limits in Australia, Denmark, Greece, Israel, Japan, Korea and Spain. Barriers to continuing to work beyond the retirement age also exist outside the pension system, especially through age discrimination from employers or in cultural acceptance of part-time work.

 Overall, for people with full careers, retirement is more flexible around the retirement age in Chile, the Czech Republic, Estonia, Italy, Mexico, Norway, Portugal, the Slovak Republic and Sweden.

 Policy makers need to ensure that postponing retirement should be sufficiently rewarding while not overly penalising people who retire a few years before the normal retirement age. In Estonia, Iceland, Japan, Korea and Portugal, the financial incentives to continue working after the retirement age are large but costly for pension providers. Flexibility should be conditional on ensuring the financial balance of the pension system, with pension benefits actuarially adjusted in line with the flexible age of retirement.

 Pensions at Glance 2017 provides comparative indicators on the national pension systems of the 35 OECD countries, as well as for Argentina, Brazil, China, India, Indonesia, the Russian Federation, Saudi Arabia and South Africa.

 Country notes are available for Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland, the United Kingdom and the United States.

 A recent OECD report, Preventing Ageing Unequally, also analysed the impact of rising inequalities and population ageing. It found that younger generations will face greater risks of inequality in old age than current retirees and for generations born since the 1960s, their experience of old age will change dramatically relative to that of previous generations.

Continue Reading
Comments

Newsdesk

UN launches global plan to strengthen protection of internally displaced persons

Newsroom

Published

on

With multiple crises forcing millions of people away from their homes, United Nations agencies, Governments and partners have launched a set of measures to strengthen protection of internally displaced persons as well as find solutions to address their problems.

“Addressing the protection needs of the forcibly displaced and seeking solutions to their plight contribute to greater stability for countries and whole regions,” said Filippo Grandi, the UN High Commissioner for Refugees, in a news release announcing the three-year Plan of Action.

The consequences of our failure to resolve internal displacement can be devastating,” he stressed.

The framework, formally called the Plan of Action for Advancing Prevention, Protection and Solutions for Internally Displaced People (2018-2020), calls on all relevant actors to step up efforts to prevent, respond to and resolve internal displacement.

It also proposes concrete activities to strengthen the participation of internally displaced persons in decisions concerning them, and expand national laws and policies on internal displacement as well as actions to improve data collection and analysis on displacements globally.

By the end of 2016, more than 40 million people were displaced within their own countries due to insecurity or rights violations. An additional 24 million were driven from their homes due to disasters. Every year, an estimated 15 million people are also displaced by development projects.

Bold and ambitious steps needed

Given this complex conundrum, “bold and ambitious” steps are needed, underscored Cecilia Jimenez-Damary, the UN Special Rapporteur on the human rights of internally displaced persons.

“The Plan of Action seeks to galvanize a strategic dialogue, concerted action and adequate resources to address the plight of the internally displaced, while engaging them in the decisions that affect them,” added the independent expert.

In the same vein, Mark Lowcock, the UN Under-Secretary-General for Humanitarian Affairs committed that the Organization will continue to work with affected Governments and displaced persons to ensure that their needs are addressed.

Leave no one behind

“The international community has pledged to leave no one behind,” stressed Mr. Lowcock, who is also the UN Emergency Relief Coordinator, noting that this promise must extend to all those displaced.

The Plan of Action was drafted under the leadership of the Special Rapporteur, the Office for the Coordination of Humanitarian Affairs (OCHA) and the Office of the UN High Commissioner for Refugees (UNHCR).

Its launch coincides with the 20th anniversary of the Guiding Principles on Internal Displacement, widely accepted as being the global standard for protecting and assisting internally displaced people.

Continue Reading

Newsdesk

UN Environment designates Chinese idol Wang Junkai as National Goodwill Ambassador

Newsroom

Published

on

Singer and Actor Wang Junkai, or Karry Wang, best known for his leading role in the box office blockbuster film Miracles of the Namiya General Store and the hit single “KarryOn” was designated as UN Environment Goodwill Ambassador today in a ceremony in Beijing.

In his role as goodwill ambassador, Wang will connect with China’s youth on some of the most urgent
environment issues of their generation, including pollution, air quality, wildlife protection, ecosystems, and more.

As a young actor and singer, I greatly appreciate UN Environment giving me this opportunity to be National Goodwill Ambassador. We youth have the responsibility to protect our environment and secure our future, and I am looking forward to learn from and work with the UN family on key environmental issues. Youth are no longer merely onlookers when it comes to environmental action, nor should they be. I will spare no effort to do everything I can to take care of our earth, and I invite everyone to join me in generating a wave of positive action.

It’s inspiring to hear a strong and determined voice of Chinese youth on environmental issues. When young people set their mind to change, incredible things can be accomplished,” said Erik Solheim, head of UN Environment. “We’re very excited to work with Wang Junkai to create even more awareness about environmental issues and, more importantly, the solutions to these challenges.”

The 18-year old performer is a superstar of the highest ranks in Asia. Known for his leading role in the film Namiya General Store, top roles in various TV series – among which “Finding Soul” and “Qingyun Zhi “ – and solo music career, he has amassed more than 40 million followers on Weibo, the Chinese version of Twitter. Both in China and the rest of South-East Asia, Wang has been one of the leaders of the online conversation on the environment.

In 2016, Wang widely shared the #wildforlife Campaign, reaching 400 million viewers. A year later, he publicly spoke out on the urgent need to protect endangered wildlife, naming them the “superstars of the planet.”

Beyond drawing attention to wildlife, he called upon his followers to pledge to reduce their e-waste, with the hashtag #beatpollution. Within 24 hours, his post was retweeted by 1.67 million times and more than 400,000 followers signed the pledges.

Continue Reading

Newsdesk

New Solar Project to Restore Electricity to Over One Million Yemenis

Newsroom

Published

on

The World Bank announced today a new project to finance off-grid solar systems in Yemen to power vital basic services, and improve access to electricity for vulnerable Yemenis in rural and outlying urban areas.

Funded by a US$50 million grant from IDA, the World Bank’s fund for the world’s poorest countries, the new project will rely on the commercial solar market, which has grown despite the conflict, providing further support to the local economy and creating jobs.

Solar power has proved to be the most immediate solution for severe energy shortages in Yemen. A booming solar industry has developed driven by the private sector, but the costs have put the technology beyond the reach of public facilities and the most vulnerable populations.

The Yemen Emergency Electricity Access Project will work with the current solar supply chain and the existing network of microfinance institutions, to finance and deliver off-grid solar systems to rural and peri-urban areas. The aim is to restore or improve access to electricity to 1.4 million people, around half of them women. The project will also fund solar power for critical infrastructure, such hospitals, schools, water corporations, and rural electricity providers.

The lack of electricity in Yemen has had a devastating impact on Yemenis and the provision of services,” said Dr. Asad Alam, World Bank Group Country Director for Yemen, Egypt, and Djibouti. “While responding to immediate need, the project will contribute to building a more inclusive and sustainable solar market in Yemen through targeted financing to the private sector which will expand its reach to the poor and vulnerable.

The project will be implemented in partnership with the United Nations Office for Project Services (UNOPS) and in collaboration with the local private sector, including Micro Finance Institutions, solar equipment suppliers and technicians. Working with the Yemeni private sector will help create hundreds of jobs.

Investing in solar will make Yemen’s electricity more resilient, reduce the dependence on fuels for critical service facilities, and create jobs in the private sector,” said Joern Torsten Huenteler, World Bank Energy Specialist and Task Team Leader of the project, “What Yemenis need today more than ever is a quick and innovative energy solutions to help ease the crisis.

With this new financing, IDA emergency grants to Yemen issued since July 2016 have totaled US$1.183 billion.

These projects have been prepared – and are being implemented – in partnership with Yemeni institutions and UN organizations such as the United Nations Development Program, the United Nations Children’s Fund, the World Health Organization, the United Nations Food and Agriculture Organization, and the United Nations Office for Project Services.

Continue Reading

Latest

Newsletter

Trending

Copyright © 2018 Modern Diplomacy