Wharton Pension Research Council Working Papers

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Working Paper

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In 1998, Sweden transformed its Social Security system into a Notional Defined Contribution (NDC) plan financed on a pay-as-you-go basis paired with a second tier of funded individual accounts. The goal was to move toward a fiscally sustainable system tied to economic growth, with a clear link between contributions and benefits. This chapter discusses the evolution of the Swedish retirement system and the challenges confronted during the implementation of the reform. The analysis also offers an outlook for the future and discusses lessons for the US retirement system.


The published version of this Working Paper may be found in the 2005 publication: Reinventing the Retirement Paradigm.

Working Paper Number


Copyright/Permission Statement

©2004 Pension Research Council of the Wharton School of the University of Pennsylvania. All Rights Reserved.

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Economics Commons



Date Posted: 30 August 2019