The political economy of pension financialisation: public policy responses to the crisis

Abstract

Financialisation has become a key feature of post-industrial economies. This special issue sheds light on pre-funded private pensions as one key component of financialisation, as they turn savings into investment via financial services providers. Public pension systems face financial pressures, resulting from ageing and rising public debt, while financial services are keen to move into the market of private pension provision. Pre-funded private pensions are shaped by regulatory policies that create and correct markets. The financial crisis has triggered policy responses including shifts in investment strategies and also a re-assessment of the role of pre-funded private pensions as a complementary, rather than a superior, source of oldage income. Policymakers' growing awareness of the benefits of collective occupational schemes administered by the social partners may pave the way for a greater role for collective schemes.

Vinneren tar alt? Fordelingsvirkninger av det nye norske pensjonssystemet

“…Hvordan slike fond forvaltes på verdens børser, og hvilke risikoer dette skaper, har gitt opphav til en egen forskingslitteratur om «finansialisering av pensjon» (f.eks. Hassel, Naczyk & Wiß 2019). Fonderingen innebaerer at framtidige pensjonister blir mindre avhengige av generasjonskontrakten, og mer avhengige av utviklingen i finansmarkedene.…”

The Role of Pension Policies in Preventing Old-Age Exclusion

“…Within individual countries, protection measures usually take the form of an overseeing regulatory body, as is the case in Ireland since 2018: if a pension fund is in deficit, a financial proposal must be submitted to the Pensions Authority within 6 months. Hassel and Wiβ (2019) point out that the global financial crisis has led to "a reassessment of the role of pre-funded private pensions as a complementary, rather than a superior, source of old-age income" (p.1). They suggest that collective occupational schemes administered by social partners may be one solution to counter the trend of treating pension funds in the same way as any investment strategy.…”

EU Pension policy and financialisation: purpose without power?

“…While the focus is on nation-states, in particular the US, European integration could also be portrayed as a handmaiden of financialisation (Engelen 2003(Engelen : 1359Pochet 2003: 50). It can transform national accumulation regimes by opening up 2 new business opportunities for transnational financial firms (Hassel et al 2019): after all, market integration happens by harmonising national legislation and regulation that ensures the freedom of capital and financial services. The latest idea of a Capital Markets Union (CMU) is a project with a financialising potential.…”