We should not be afraid of a stronger role for privately managed funded systems. Such systems have the advantage of efficient administration and an absence of political interference. They may also induce increased private savings.
But suitable regulation must deter risky investment strategies that could jeopardise living standards at a vulnerable stage in people's lives and would discredit an increased role for the private sector. The ageing of the population will also have a profound impact on budgetary policies, not only because of the consequences of population ageing on pension arrangements.