Articles - Measuring multidimensional adequacy of pension systems


 Measuring the multidimensional adequacy of pension systems in European countries
 By Filip Chybalski, Pensions Institute
 
 The paper presents a multidimensional approach to the adequacy of the pension system, recognising it as the most relevant in comparative analyses of pension systems, as well as more authoritative than a one-dimensional approach based exclusively on pensioners’ income calculated on the basis of the replacement rate. Adequacy of the pension system can be also understood to mean the effectiveness of pension system when assessing its ability to realize income objectives. Starting from the micro- and macro functions of the pension system, OMC and World Bank objectives in terms of pension adequacy, and taking into account the indicators used by the European Commission to monitor the attainment of OMC objectives, the paper presents the overall concept of multidimensional adequacy of a pension system. Three dimensions of adequacy are defined: income, poverty, and differentiation of pensioners’ material situation by gender. Next, sub-indicators measuring the individual dimensions of adequacy are proposed, along with an aggregation procedure based on the tools of multidimensional statistical analysis. First the sub-indicators are aggregated into synthetic indicators for individual dimensions, and finally the synthetic indicators for individual dimensions are aggregated into a single synthetic indicator of the adequacy of the pension system (APS). Based on the proposed procedure, the adequacy of the pensions systems of 26 European countries is measured, and the quality of this measurement is assessed.
 
 To read this paper please donwload below.
 
 
 For further Pensions Institute papers please visit http://www.pensions-institute.org/papers.html

Back to Index


Similar News to this Story

Transforming compliance into competitive advantage
For decades, life insurers in the UK operated on a “silent partner” model: engage the consumer when they buy a policy, send the occasional annual stat
Sustainability in bulk annuities
The UK’s pension landscape is undergoing a profound transformation. As most defined benefit (DB) pension schemes mature and close, trustees and sponso
Harnessing data to drive positive impact
Examining how elevated inflation and the run of catastrophic events could help fuel transformation in the way the Non-life sector interacts with custo

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.