24 Questions
What is the main purpose of retirement institutions from an individual perspective?
Consumption smoothing
What is the main challenge associated with the occupational pension scheme?
Aging population and rising dependency ratio
What is the primary source of funding for private pensions?
Personal savings and investment returns
What is the suggested solution for the main problem associated with private pensions in the 21st century?
Working longer and/or more savings
Should we substitute paygo and funding?
Yes, to promote individual responsibility
What is the primary aim of pension systems in most countries?
To deliver a pension equal to 70% of the average income after retirement
What is an advantage of a combination of PAYG (Pay-As-You-Go) and funding in pension systems?
Risk diversification by spreading risks across different sources
What is the main impact of demographic risks associated with PAYG systems?
A decrease in the sustainability of the pension system
Which countries have a high percentage of public pension and low total pension assets/GDP ratio?
Italy and Spain
What influenced the establishment of most universal mandatory pensions in developed countries during the late 1930s to early 1950s?
Political preferences and historical events
What is the primary purpose of retirement institutions from an individual perspective?
Consumption smoothing
What is the main problem associated with the occupational pension scheme?
Low rate of capital market return
Which type of pension scheme is residence-based and funded via paygo (government contributions)?
State pension (public pension)
What is the suggested solution for the main problem associated with private pensions in the 21st century?
More savings
What is the primary source of funding for private pensions?
Personal savings and investment returns
What is the main aim of pension systems from a government's perspective?
Income redistribution
What is the primary purpose of pension systems in most countries?
To deliver a pension equal to 70% of average income before retirement
What is the primary advantage of a combination of PAYG and funding in pension systems?
Risk diversification
What is the main challenge associated with the occupational pension scheme?
Financial market risks
What is the primary aim of pension systems from a government's perspective?
To ensure the sustainability of the system
What influenced the establishment of most universal mandatory pensions in developed countries during the late 1930s to early 1950s?
Hyperinflation and the Great Depression of the 1930s
What is the main impact of demographic risks associated with PAYG systems?
Increase in dependency ratio
What is an advantage of collective savings plans in mitigating financial market risks?
Risk-sharing strategies
What is the potential impact of inflation on pension savings?
Erosion of the real value of pension savings
This quiz covers the introduction to social security and pensions, focusing on the diversity across Europe. Topics include the need for retirement institutions from both individual and government perspectives, such as consumption smoothing, insurance for lifetime risks, income redistribution, and poverty relief.
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