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[Comments on specific article] No.82-Sweden’s Pension Architecture, Philosophy and How It Works in Practice
Time: 2020/5/5 12:31:02
Abstract: This paper presents the architecture of the Swedish pension system, the philosophy behind it and illustrates how it works in practice. At the foundation of the Swedish pensions landscape is the public pension commitment. It is based on the philosophy that all countries must begin with: The commitment to provide a sufficient minimum standard of living in old age for all. This is the role of the necessary pillar zero. Pillars one and two consist of mandatory universal public nonfinancial defined contribution (NDC) and a financial defined contribution (FDC) schemes. These cover the earnings of all employees and self-employed – up to a ceiling. In principle, the technical construction of the NDC and the guarantee benefits – explained in greater detail in the paper – can be viewed together as a package that fulfills the guaranteed minimum standard of living in old age, while making full use of the DC accounts to provide an incentive for individuals to contribute to their own retirement income.
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Copyright © 2012-2024 Research Team of Income Distribution. All Rights Reserved
Address: 4th Floor of Jing-shi-xue-tang and Room 9504 of Jingshi Hotel, Beijing Normal University, No. 19 Xinjiekouwai Street, Haidian District, Beijing, 100875.
© 版权所有:收入分配研究团队 2012-2024 京ICP备12037474号-1
地址:北京市海淀区新街口外大街19号 邮编:100875
Copyright © 2012-2024 Research Team of Income Distribution. All Rights Reserved
Address: 4th Floor of Jing-shi-xue-tang and Room 9504 of Jingshi Hotel, Beijing Normal University, No. 19 Xinjiekouwai Street, Haidian District, Beijing, 100875.