Replacement rates in the new Swedish pension system – a Danish perspective
4/2006
The authors comment on the article in NFT 2/2006 on replacement rates in the Swedish pension system. The authors are not surprised by the financing problems arising in Sweden, and they claim that the organization of the Swedish pension system as a tax financed pay-as-you-go system makes it vulnerable to budgetary considerations, even though the system is a notional defined contribution scheme. In Denmark the responsibility for topping up social pensions lies with the private sector. This gives rise to different risk sharing features than in Sweden.
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