Symposium: Financial Resilience throughout Life Keynote by Elsa Fornero: Wednesday 20th of April 2016 Beurs van Berlage - Amsterdam

1. Reform. Inform. Educate.
A New Paradigm to Improve Fairness and
Sustainability of the European Welfare System
Elsa Fornero
University of Turin
April 2016

2. | Reform. Inform. Educate.2

3. | Reform. Inform. Educate.3

4. | Reform. Inform. Educate.4

5. |
The population pyramid - Italy- 1971
Reform. Inform. Educate.5
3000 2000 1000 0 1000 2000 3000
meno di 5
10 a 14
20 a 24
30 a 34
40 a 44
50 a 54
60 a 64
70 a 74
80 a 84
90 a 94
100 e +
Men
Women

6. |
The population pyramid - 2011
Reform. Inform. Educate.6
3000 2000 1000 0 1000 2000 3000
meno di 5
10 a 14
20 a 24
30 a 34
40 a 44
50 a 54
60 a 64
70 a 74
80 a 84
90 a 94
100 e +
Men
Women

7. |
The population pyramid - 2061
Reform. Inform. Educate.7
3000 2000 1000 0 1000 2000 3000
meno di 5
10 a 14
20 a 24
30 a 34
40 a 44
50 a 54
60 a 64
70 a 74
80 a 84
90 a 94
100 e +
Men
Women

8. |
1971 2011 2061
Reform. Inform. Educate.8

9. |
How to redress the intergenerational
compact
Reform. Inform. Educate.9
• reduce the burden on young/future
cohorts
• improve the mix between social insurance
and social protection

10. |
Saving the European Welfare
System
Reform. Inform. Educate.10

11. Sustainability
Reforms
Improve the synergies btw. adequacy and sustainability
A
d
e
q
u
a
c
y
Reform. Inform. Educate.11

12. |
The new paradigm
Reform. Inform. Educate.12
Reform Inform Educate

13. |
1. Reform
Reform. Inform. Educate.13
• Towards a social insurance
• Uniform and transparent rules
• Inclusive labor market
• State/market complementarity

14. |
The golden rules of pensions
Reform. Inform. Educate.14
• Responsibility: pension financed through saving
• Flexibility: benefits linked to the age of exit; possibility of
choice btw. constant and increasing pension; Gradual
retirement
• Sustainability: age linked to life expectancy
• Adequacy: integration with supplementary pensions and LTC
services
• Solidarity instead of privileges

15. |
2. Inform
Reform. Inform. Educate.15
The example of the orange envelope
Simple but accurate information to ensure:
- good planning of retirement savings over
the life cycle
- a proper assessment of the possible choices
(eg . pension fund, retirement age)

16. |
3. Educate
Reform. Inform. Educate.16
• A higher responsibility requires a minimum of knowledge
• Economic and financial education is essential for:
- A prudent accumulation/management of savings
(women more at risk)
- A higher effectiveness of the reforms (citizenship)

17. | Reform. Inform. Educate.17
“It's easy, impossible, tough going, worth a shot”
(Wislawa Szymborska, "Poems, New and Collected, 1957-1997", Houghton Mifflin
Harcourt, Boston, 2000.)