Pension Systems and Pension Reforms in Europe

The pension reforms at the turn of the century have made the Austrian pension system more sustainable. However, in view of tight public budgets, legislators will have to consider potential further reform options for the pension system. This study provides an overview of old age security systems in Europe and recently implemented pension reforms. The majority of countries raised the retirement age, but the level of new pensions has also been reduced and in some cases contributions have been increased. In Scandinavia, survivors' pensions have been restricted. Several countries have also introduced indirect incentives to remain in employment or established automatic adjustment formulas. Empirical studies on the success for implementing pension reforms show that a business cycle downturn and high international pressure promote their implementation.