Public and Private Pensions: A Competitive Approach Cover Image

Public and Private Pensions: A Competitive Approach
Public and Private Pensions: A Competitive Approach

Author(s): Jaroslav Vostatek
Subject(s): Government/Political systems, Welfare systems, Public Finances
Published by: Masarykova univerzita
Keywords: Old-age pensions; public pensions; private pensions; defined contribution products;
Summary/Abstract: The paper concentrates on the first, second and third pension pillars according to the World Bank classification – in these pillars there are products which may compete in the effectiveness. No attention is paid to the zero, solidarity pillar. The neoliberal approaches justified in the first period the full privatization of public pensions beyond the solidarity pillar and later the transition to a half privatization under the catchword of diversification. The neoliberal theory has lead to a development of the NDC and FDC social insurance products, which are, as for the effects for clients, directly comparableto the private FDC products. Under comparable conditions the basic and supplementary social insurances are more favourable than mandatory private insurance and subsidized voluntary private insurance.