Ageing, Fiscal Sustainability and Occupational Pensions
During the 1990s most European countries has witnessed an increase in the contributions to funded pension schemes. In Denmark there has been a substantial increase the contributions due to the introduction of occupational pension schemes for blue-collar workers in the private sector. By 1995 occupational pension contributions were included in all bargaining agreements in Denmark. Contribution rates currently amount to 7 percent of the wage bill, and they are expected to increase to 9 percent in 2004. The primary goal of the proposed research project is to analyse to what extent the expansion of the funded pension system in Denmark has contributed to a reduction in the financial burden of the demographic ageing of the society. The analysis will approach this issue by focusing on the effect of contributions to the pension system on the sustainable tax rate.
and you can read the Policy analysis Ageing, Fiscal Sustainability and Occupational pensions, Svend.E. Hougaard Jensen & Lars Haagen Pedersen here