The politics of pensions

Pension systems across the globe face major headwinds that will weigh heavily on governments, policy makers and members of the public. Demographic pressures created by ageing workforces and longer lifespans, the increasingly small world of a global financial economy, and government promises of retiree benefits and services are coalescing to place retirement policies at significant risk in the years ahead. How governments respond to address the steadily weakening underlying structures will have a major effect on the future of programs that support workers in retirement.

This article explores the reasons government intervention in the pension system can be expected, using Australia as an example.