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Summary
The objective of this paper is to analyse, in a general way, the impact that globalization has had over the national context of the western European countries and to focus on the UK case in the last 25 years.
The transformation that advance capitalist societies have experienced since mid-1970 have been caused, among others, by international pressure for being more competitive, by the two oil crises, and by the development of new technology. Every country has faced these problems differently depending on its specific national context. The pension regimes, as a component of a broader economic, political and social system, have not been indifferent to such transformation since they have suffered important changes, which have influenced in the nature of employment, in how labour is organised, and in the way of life of the whole society.
UK, for example, experienced a crisis at the end of the 70's and beginning of the 80's due to the difficulties to adapt to new global demands, which in turn influenced in the transformation of its pension system. The case of the UK has been distinct to western European nations since its social order has widely differed from those countries. The Liberal British Welfare State, that has supported the pension system, has established a system where individuals are encouraged to look for private provision since the public pensions are not enough for living.
Before the 1980s, the government used to encourage defined benefit (DB) Occupational Pensions in addition to the State scheme, whereas during 1980s under the Thatcher administration the aim was to undermine the role of both the DB Occupational Pension and the State schemes in order to support private personal pensions and defined contribution (DC) Occupational Pensions. The result for the society has been that those disadvantaged groups that need more help, are those that do not have private support due to the characteristics of their employment. They are normally in part-time or temporary bases with a low salary that does not allow them to have personal plans, and occupational schemes generally exclude them.
With this perspective, it could be said that globalization, has created a polarised society where those with a stable job have enjoyed the advantages of either personal or occupational pension schemes since they can afford to make payments to an individual account or to make additional voluntary contributions in an occupational plan in order to have a bigger pension at retirement, while those with less favourable labour conditions have to live with a minimum pension provided by the State.
Even though the analysis is focussed on British Pension System, this situation, taking into account the national context, could be seen in other countries which have suffered important changes in their pension systems. This is Mexico's case, that has experienced the transformation of its pension system to adapt to a global concept which requires more
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