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Pension Systems’ Reforms

Countries that have introduced a mandatory or cuasi-mandatory individually-funded pension programs – sorted by starting year of operations.

The Multiple Pillar terminology used to describe the structure of the Pension Systems of each one of the countries described in this section, follows the internationally accepted taxonomic guidelines which are commonly used. This classification is as follows:

First Pillar: Non-contributory or social pensions pillar, financed with the public budget (general or specific taxes). There are countries that have universal non-contributory pensions, without means testing; other countries focus this type of pension on lower income people, through means testing.

Second Pillar: The mandatory contributory pillar of the pensions system, comprising mainly two types of components: (i) a state-managed PAYGO program, and/or (ii) an individually funded program, managed by private agencies.

Third Pillar: Voluntary contributory pillar of the pension system, with tax incentives to stimulate complementary pension savings (in addition to the mandatory Second Pillar savings). Depending on the country, this Pillar is managed by private entities, banks and other institutions.

Below you can find the basic operation of the pension systems that have mandatory or quasi-mandatory individual savings programs.

Malaysia (1951)

Singapore (1955)

Denmark (1964)

Chile (1981)

Australia (1992)

Peru (1993)

Colombia (1994)

Uruguay (1996)

Bolivia (1997)

China (1997)

Mexico (1997)

El Salvador (1998)

Hungary (1998)

Kazakhstan (1998)

Poland (1999)

Tajikistan (1999)

Sweden (1999)

Panama (2000)

Costa Rica (2000)

Hong Kong (2000)

Latvia (2001)

Bulgaria (2002)

Croatia (2002)

Estonia (2002)

Kosovo (2002)

Dominican Republic (2003)

Russian Federation (2003)

India (2004)

Lithuania (2004)

Nigeria (2005)

Taiwan (2005)

Slovak Republic (2005)

Macedonia (2006)

Uzbekistan (2007)

The Netherlands (2007)

Rumania (2008)

Israel (2008)

Kyrgyzstan (2008)

Ghana (2010)

Brunei (2010)

United Kingdom (2012)

Honduras (2016)

Türkiye (2017)

Armenia (2018)

Georgia (2019)

Philippines (2021)

Greece (2022)

Belarus (2022)

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