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Portuguese National Ss

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Submitted By felizardomf
Words 1916
Pages 8
Nova School of Business and Economics

Public Economics
Spring Semester 2014, 14th May

Individual Assignment
Social Security – Proposals to reform the Portuguese system

Márcio Felizardo, student no. 11345

Index

Introduction 4 Government Intervention – Provision of Retirement Pensions 4 Raising the Retirement Age 5 Limiting the Retirement pension 6 Conclusion 6 Bibliography 7

Introduction

The present assignment will focus on the expenditure on old-age pension programs and will focus in the specific case of Portugal.
Recent history shows that when economies tend to slow down their performance, there are remarkable expansions in the demand for social benefits. This enforces European governments – especially Portugal - to spend important amounts of revenue in order to provide a certain level of income to all of those who are temporarily affected by unemployment and other social problem.
Along with this extra temporary expenditure, governments incur in elderly benefit programs that usually include retirement pensions and healthcare exemptions. Whenever there is a crisis, a public debate regarding efficient allocation of social security benefits arises because economic slowdown shows the fragilities of the system and forces governments to cut some benefits on permanent social security programs – which people claim to constitute a right that meet their working period contributions.
It will be analyzed whether or not the systems are sustainable in the present and if there are reforms that may turn Social Security programs more efficient while maximizing the social welfare.
Government Intervention – Provision of Retirement Pensions

Public provision of social security is obviously necessary and presently is based in a pay-as-you-go system in Portugal, which means that current working-age generations are paying taxes to support the

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