Pension reform involves significant policy changes to national retirement systems, addressing long-term financial stability for retirees and future generations....
Pension reform refers to legislative or policy changes made to public or private retirement systems, often aimed at ensuring their long-term financial sustainability and the adequacy of benefits for retirees.
Reforms are frequently driven by demographic shifts like aging populations and declining birth rates, increased life expectancy, and insufficient funding, which strain existing pension systems' ability to pay future benefits.
Pension reform impacts current retirees, active workers (through changes to contributions, retirement age, or benefit calculations), employers, and ultimately, national economies and government budgets.
Common measures include increasing the statutory retirement age, raising employee or employer contribution rates, adjusting benefit formulas, or transitioning from defined benefit to defined contribution plans.