Pensions Crisis - Key Terms

Key Terms

  • Support ratio: The number of people of working age compared with the number of people beyond retirement age.
  • Participation rate: The proportion of the population that is in the labor force.
  • Defined benefit: A pension linked to the employee's salary, where the risk falls on the employer to pay a contractual amount.
  • Defined contribution: A pension dependent on the amount contributed and related investment performance, where the risk falls mainly on the employee.

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