ABSTRACT
This chapter focuses on the principles for pensions, but also ventures into the development in the pension system, given the discussion on the increase in life expectancy with a greying society. It also focuses on the principles and main types of pension systems, such as Pay-As-You-Go (PAYG) and funded systems, but also the relation to occupational welfare. The chapter explores the future development. Pensions are one of the old social risks, with different criteria attached in order to get access to the pension. Systems also have different approaches as to how and under what conditions people can retire earlier or later than the actual pension age. Pensions are an important source of income for many persons in welfare states. The reforms have increased the age at which one can retire, and also in some cases reduced the level of the pensions.
