Pensions, a challenge for SMEs: OECD
The Organization for Economic Cooperation and Development (OECD) considers that in the countries that make it up, it is the employers who contribute with 50 percent retirement income, so they should be involved in designing policies that improve pension systems.
In the OECD Pensions Outlook report, however, the agency acknowledges that retreats They present challenges, especially for small businesses, which “may be reluctant to establish pension plans due to the cost, complexity and administrative burden.”
However, “employers can play an important role in providing asset-backed pension plans,” according to the report.
To do this, it is necessary to strengthen its function, balancing the advantages, such as the design of plans adapted to the needs of employees, with the potential challenges.
He recommended ensuring the right conditions in financial regulations and markets and reducing barriers that prevent employers from establishing pension schemes.
This is in addition to the flexibility offered to employers to adapt the design of the plan within a regulatory framework that guarantees non-discriminatory treatment for workers; promote the use of strategies to encourage participation and savings; facilitate financial education in the workplace; and provide a framework for good governance.
The report suggests not delaying reforms or implementations that improve pension systems.
He explained that one of the challenges is that, given the financial and economic uncertainty, as well as the rising cost of living, pension system regulators decide to postpone pension improvements.
Source: El Heraldo De Mexico
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