Letter From Brussels: Default guarantee option dominates debate on PEPP

Press review IPE “(…) Lionel Martellini, director of EDHEC-Risk Institute in Nice, notes that state pension systems are weakening in most EU countries. Funded systems, as in the UK, are in deficit, while pay-as-you-go schemes, as in France, are being undermined by the severe decrease in the ratio of workers to retirees. Yet he cautions against a debate that focuses only on the merits of guarantees versus life-cycle options when neither provides for income in retirement. Replacement income, not absolute wealth, should be the focus, he stresses.(…)” Copyright IPE https://www.ipe.com/analysis/letter-from-brussels/letter-from-brussels-default-… 2018