Why pillars
The World Bank (1994) proposed public, mandatory funded and voluntary pillars to diversify risk, a frame used for Korea's National Pension and pension savings.
The five-pillar revision
Holzmann and Hinz (2005) added a zero pillar and non-financial support; Barr (2002) noted funding does not escape ageing costs. See Bismarckian and Beveridgean models.
Privatisation debate
Orszag and Stiglitz (2001) rebutted privatisation myths; Orenstein (2008) traced its spread; Ebbinghaus (2011) noted inequality risks; Holzmann (2013) surveyed reversals.
FAQ
- What is it in simple terms?
- Retirement income comes from state, employer and personal savings rather than one source.
- Does it mean cutting public pensions?
- Not necessarily; today's version stresses basic protection.
Sources reviewed: 2026-10-26
References
- World Bank. (1994). Averting the old age crisis: Policies to protect the old and promote growth. Oxford University Press. The report that spread the three-pillar pension model worldwide.
- Orszag, P. R., & Stiglitz, J. E. (2001). Rethinking pension reform: Ten myths about social security systems. In R. Holzmann & J. E. Stiglitz (Eds.), New ideas about old age security (pp. 17–56). World Bank. Rebuts ten myths behind pension privatisation.
- Barr, N. (2002). Reforming pensions: Myths, truths, and policy choices. International Social Security Review, 55(2), 3–36. Clarifies funding versus pay-as-you-go debates.
- Holzmann, R., & Hinz, R. (2005). Old-age income support in the 21st century: An international perspective on pension systems and reform. World Bank. Presents the revised five-pillar framework.
- Orenstein, M. A. (2008). Privatizing pensions: The transnational campaign for social security reform. Princeton University Press. Analyses how international actors spread pension privatisation.
- Ebbinghaus, B. (Ed.). (2011). The varieties of pension governance: Pension privatization in Europe. Oxford University Press. Compares the growth of private pensions across Europe.
- Holzmann, R. (2013). Global pension systems and their reform: Worldwide drivers, trends and challenges. International Social Security Review, 66(2), 1–29. Surveys worldwide pension reform drivers and trends.