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Pensions, health and long-term care

Skoða venjulega færslu

dc.contributor.author Stefán Ólafsson
dc.date.accessioned 2011-03-03T11:30:44Z
dc.date.available 2011-03-03T11:30:44Z
dc.date.issued 2010-05
dc.identifier.uri http://hdl.handle.net/10802/484
dc.description.abstract Iceland has a pension system which has many characteristics commonly associated
with the Scandinavian pension systems, while also retaining some of its own
characteristics. The pension system is universal in coverage, with rights based on
period of residence in the country. It has three pillars. The universal public social
security part (Pillar I) is primarily tax-funded, while the occupational pensions (Pillar
II) are contribution-based. The system is redistributive on the whole and succeeds
well in alleviating poverty amongst the elderly and other pensioners, in comparison to
other European societies. Despite the strains of the present financial crisis, the pension
system remains mainly intact, and some reforms that were initiated in 2008 are still to
some extent in effect, albeit with reductions and cost containments. Some reforms are
still being planned such as a large-scale simplification of the social security system
and some aspects of the vocational rehabilitation and activation system.
While the Icelandic health care sector, which has had a very high quality level by
international standards, is obviously also facing a very stringent test due to
expenditure cuts, there are clearly some signs of success in preserving the security and
quality of services to date. Waiting lists have actually been significantly reduced in
2009, and despite increased pressure on staff at various levels, there are also healthy
signs of stamina and effort to do better. Plans for new buildings for the national
University Hospital are an important sign of the goal of government and staff to fight
to preserve the high standard of the Icelandic health care system, despite the
temporary difficulties. The next two years will decide how well that goal will be
achieved.
By most measures, the long-term care sector in Iceland has a high level of service
provision, including home help and nursing facilities. Still, there have been significant
complaints in recent years about inadequate caring facilities, especially for the frail.
Another frequent complaint is that too many elderly have to share rooms with
strangers in homes for the elderly and in care homes for people in need of more
intensive care.
On the whole, one can say that the consequences of the financial crisis for living
standards in Iceland have been very serious indeed. The government has aimed to
alleviate the worst consequences, particularly directing its limited financial resources
towards lower income households. This is reflected in social protection developments
since the time of the crash in October 2008, such as the raising of the minimum
pension guarantee and increases in general social security pension and benefit
payments on 1 January 2009, some increases in the amount of the basic
unemployment benefit, increases in child benefits and tax rebates for mortgage
interests. This is also reflected in the distribution of the increased tax burden (against
which low-income earners have largely been sheltered) and with the general aim of
keeping the public welfare system intact. Difficult problems remain and, even though
the economy may be bottoming out at the present time, the standard of living
consequences are likely to continue to surface into the next year or two. Further tax
increases and cuts in public expenditures seem inevitable in the next two years, in
order to balance the state budget and to start paying debts. Iceland has indeed tried to
shelter the more vulnerable groups with social protection measures.
is
dc.language.iso en en_US
dc.publisher ASISP. Analytical Support of the Socio-Economic Impact of Social Protection Reforms en_US
dc.relation.ispartofseries Annual national report;2010
dc.subject Aldraðir en_US
dc.subject Lífeyrir en_US
dc.subject Heilsa en_US
dc.subject Umönnun en_US
dc.title Pensions, health and long-term care en_US
dc.type Ársskýrsla en_US


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