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Overview of the Portuguese Three Pillar Pension System

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  • Maria Teresa Medeiros Garcia

    (Universidade de Lisboa)

Abstract

In order to cope with alleged future financial problems, several changes were made to the design of the Portuguese pension system since 2000. The aim was to achieve the diversification of retirement income sources across providers, both public and private, across the three pillars: public, industry-wide, and personal, and also across the financing forms of pay-as-you-go and funded. This paper describes these changes and analyses the results regarding, principally, the weight of each pillar and the investment performance of both public pension reserves and private pension funds. The main finding is that, in effect, there is one substantial longstanding pillar, and that is the public system.

Suggested Citation

  • Maria Teresa Medeiros Garcia, 2017. "Overview of the Portuguese Three Pillar Pension System," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 23(2), pages 175-189, May.
    • Handle: RePEc:kap:iaecre:v:23:y:2017:i:2:d:10.1007_s11294-017-9636-x
    DOI: 10.1007/s11294-017-9636-x
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    References listed on IDEAS

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    1. James K. Galbraith & L. Randall Wray & Warren Mosler, 2009. "The Case Against Intergenerational Accounting: The Accounting Campaign Against Social Security and Medicare," Economics Public Policy Brief Archive ppb_98, Levy Economics Institute.
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    3. Bernard H. Casey, 2014. "From pension funds to piggy banks: (Perverse) consequences of the Stability and Growth Pact since the crisis," International Social Security Review, John Wiley & Sons, vol. 67(1), pages 27-48, January.
    4. Maria Teresa Medeiros Garcia & Emídio Graça Lopes, 2009. "The macroeconomic impact of reforming a PAYG system: The Portuguese case," International Social Security Review, John Wiley & Sons, vol. 62(1), pages 1-23, January.
    5. John Y. Campbell, 2006. "Household Finance," Journal of Finance, American Finance Association, vol. 61(4), pages 1553-1604, August.
    6. Carlos Manuel Pereira da Silva & João Paulo Tomé Calado & Maria Teresa Medeiros Garcia, 2004. "The Financial Sustainability of the Portuguese Social Security System," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 29(3), pages 417-439, July.
    7. Bodie, Zvi & Shoven, John B. & Wise, David A. (ed.), 1987. "Issues in Pension Economics," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226062846, April.
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    Cited by:

    1. Pavlína Kirschnerová & Jana Janoušková, 2018. "Are Tax Expenditures of Individuals Only a Tool of Tax Optimisation?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(3), pages 239-252, August.
    2. Maria Teresa Medeiros Garcia & Liane Costa Gabriel, 2021. "Asset Liability Management: Evidence from the Banco de Portugal defined benefit pension fund," Working Papers REM 2021/0159, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    3. Maria Teresa Medeiros Garcia & André Fernando Rodrigues Rocha da Silva, 2023. "Pension expenditure determinants: the case of Portugal," Public Sector Economics, Institute of Public Finance, vol. 47(2), pages 177-203.
    4. Maria Teresa Medeiros Garcia & André Fernando Rodrigues Rocha da Silva, 2019. "Assessing Pension Expenditure Determinants – the Case of Portugal," Working Papers REM 2019/68, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    5. Maria Teresa Medeiros Garcia & Beatriz Costa, 2020. "Performance of Personal Pension Funds in Portugal," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(3), pages 259-272, August.

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    More about this item

    Keywords

    Pension system; Reforms; Rate of return;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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