On the Long-Term Risks Facing Pension Schemes and
Pension Funds in Europe
This paper examines the economic, social and political risks faced by
both pay-as-you-go and funded pension schemes in Europe. The most
important risks relate to the ageing of the population and the growth in
unemployment within the working population. The paper concludes that
because of these risks, pay-as-you-go schemes are no longer viable and
that funded schemes will face increasing difficulties in delivering their
pension promise, unless something dramatic is done to reduce unemployment,
and increase labour productivity in Europe.
Appears in Journal of Pensions Management, April, 1996.