# **Table of Contents**

|Preface|................................................................................................................................. 1|
|---|---|
|1.<br>Int|roduction ................................................................................................................. 2|
|2.<br>|Overview of Pension Systems ................................................................................. 2|
|2.1|Overall Structure of Pension Systems .................................................................. 2|
|2.2|Structure and Cost of Public Pillars ..................................................................... 4|
|2.3|Structure of Private Pillars ................................................................................... 7|
|2.4|Target Replacement Rates .................................................................................. 11|
|3.<br>Pr|oduct Regulation and the Level of Annuitization .................................................. 13|
|3.1|The Regulation of Payout Options ..................................................................... 13|
|3.2|The Regulation of Life Annuities ....................................................................... 15|
|3.3|The Regulation of Term Annuities and Phased Withdrawals ............................ 18|
|3.4|The Regulation of Marketing ............................................................................. 20|
|3.5|Level of Annuitization ....................................................................................... 23|
|3.6|The Value of Annuities and Money Worth's Ratios .......................................... 29|
|4.<br>Pr|ovider Regulation ................................................................................................... 30|
|4.1|Institutional Structure ......................................................................................... 31|
|4.2|Capital and Prudential Regulations .................................................................... 33|
|4.3|Risk Management ............................................................................................... 39|
|4.4|Risk Sharing Arrangements ............................................................................... 42|
|5.<br>Le|ssons for Other Countries ...................................................................................... 43|
|5.1|The Feasibility of Sound Market Development ................................................. 43|
|5.2|The Regulation of Payout Options ..................................................................... 44|
|5.3|The Regulation of Pricing and Marketing Policies ............................................ 45|
|5.4|The Institutional Structure of Markets ............................................................... 46|
|5.5|The Creation of Robust and Effective Prudential Regulation and Supervision . 47|
|5.6|The Promotion of Efficient Risk Management .................................................. 48|
|5.7|In Conclusion ..................................................................................................... 49|
|Refere|nces ......................................................................................................................... 50|