Credible pensions

Tim Besley
Andrea Prat

Published on 30 March 2005

This paper discusses how the governance of public and private pensions is key to making such promises credible.

<p>One of the main problems in pension policy is to develop an institutional framework that guarantees that public and private pensions promises are kept. This paper discusses how the governance of public and private pensions is key to making such promises credible. It argues that credibility concerns undermine the case for earnings-related pensions run by the state and private defined benefit plans.</p>

Authors

Tim Besley

Research Associate London School of Economics

Timothy is a Research Associate at the IFS and a Professor of Economics and Political Science at the London School of Economics and Political Science.