2017 The Contradictions of Pension Fund Capitalism

Abstract

A central feature of the evolution of social security systems over the past 15 years has been the growing significance of funded private pensions, or pension benefits backed by financial assets (OECD 2016a). Globally, private pension assets reached US$38 trillion in 2015, concentrated largely in the rich countries of the OECD, and double the level attained a decade earlier. On a weighted average, these assets now represent over 120% of GDP in OECD countries (OECD 2016b). Invested across the planet, in every conceivable industry, commodity, and asset class, pension funds are today leading agents in, and beneficiaries of, liberalized and globally integrated financial markets.