Pension funds: key issues after the global crisis
Maria Alejandra Caporale Madi
Please cite the paper as:
Maria Alejandra Caporale Madi, (2018), Pension funds: key issues after the global crisis, World Economics Association (WEA) Conferences, No. 2 2018, The 2008 Economic Crisis Ten Years On, 15th October to 30th November, 2018
This paper has been included in the publication
“The 2008 Crisis Ten Years On: in Retrospect, Context and Prospect Paperback”
Pension funds have been playing and will play an outstanding role in the global saving and investment process. However, in spite of the pension funds’ power to centralize huge amount of “savings from workers”, workers do not seem to have a strong defense against the contemporary worldwide trends. By analyzing the impacts of the global scenario on the savings of workers and the future flows of workers’ income, this paper aims to favor a reflection on the pension funds ́ challenges after the 2008 global crisis. Unlike the main discussions on the dynamics of pension funds – that considers short-term market performance – our perspective privileges a long-run perspective. The cutting questions proposed are: How could the low interest rate and austerity policies affect the evolution of the workers ́ savings? How could the pension funds ́ allocation strategies give support to the new short-term business practices of private equity funds? How could the informal economy and youth unemployment affect the future pension funds ́ inflows? The paper addresses that it is crucial not only to re-shape the pension funds ́ regulation in terms of asset allocation but also to re-think public polices related to job creation. Besides, it is urgent to consider pension funds as a public good to create new conventions and institutional set ups that could cope with solutions focused on sustainable livelihoods.