Nav­ig­at­ing Pen­sion Sys­tems in an Aging World: Les­sons from Den­mark

About

The Danish pension system is often ranked as one of the best pension systems in the world. An essential part of the Danish welfare state, it generates high living standards in retirement and mitigates old-age poverty. At the same time, it is financially sustainable and responds powerfully to the challenges posed by demographic aging – at a time where pension systems in many other countries are coming under pressure. While the system also has its weaknesses, e.g. relating to pension fund regulation and governance, it serves as a blueprint for reforming pension systems in other countries.

This course is an introductory course to the economics of pensions. We will use the Danish example to study what makes for a good pension system, and develop policy recommendations for pension systems in other countries.

We will start by studying pension systems from a theoretical perspective. We will focus on two prototype pension systems – pay-as-you-go pensions and funded pensions –, understand how they work and identify their strengths and weaknesses. We will also study how each responds to demographic aging.

In the second part of the course, we will study how pension systems work in the real world. We will get familiar with the key features of the Danish pension system, learn about its history and cast a glance into its future. Building on the Danish case, we will then consider the pension systems of other countries and derive concrete suggestions for making these pension systems more sustainable.

Learning objectives

Identify within an overlapping-generations model how different pension schemes affect individual saving decisions over the life-cycle

Understand the economics of population aging and identify the main mechanisms through which pension systems are challenged by demographic changes

Compare the welfare and distributional implications of different pension systems

Demonstrate a solid understanding of the structure of pension systems from a practical perspective, such as types of pension schemes, the role of pension funds, regulation of the pension sector, etc.

Analyze the relationship between the pension system and households’ economic and financial decisions based on Danish and international evidence

Course leader

Katja Mann - Department of Economics (ECON)

Target group

This is a graduate level course. CBS Summer University courses at Copenhagen Business School is open to all and welcomes domestic and international students as well as professionals

Fee info