Pension provision in Europe will change dramatically over the next decades owing to the reform of the public PAYG systems (aimed at reducing their overall generosity and restoring their financial equilibrium) and to the efforts to build a substantial funded component. Given the expected growth of funding all over Europe, the earlier a common framework will be agreed upon, the better.
In order to effectively improve the allocation of pension wealth, the funded pillar must be based on efficient annuity markets. In most European countries, however, these markets are very thin, hindered by substantial risks and by imperfect and incomplete information.
The CeRP conference concentrated on annuity markets around the world; examined how longevity and return risks are dealt with; presented a discussion of key features from both the household and the actuarial perspective; provided an overview of regulatory issues (transparency, prudential provisions, appropriate levels of guarantees and of administrative costs).