Assessing the sustainability of pension reforms in Europe

Spurred by the ageing transition, many governments have made wide-ranging reforms, dramatically changing Europe?s pensions landscape. Nevertheless there remain concerns about future costs, while unease about adequacy is growing. This study develops a comprehensive framework to assess pension system sustainability. It looks at the effects of reforms on the ability of systems to alleviate poverty and maintain living standards, while setting out how reforms change future costs and relative entitlements for different generations. Though reforms have helped address the financial challenge faced by pension systems, in many countries pressures remain strong and further reforms are likely.