Public Pensions and Implicit Debt: An Investigation for EU Member States Using Ageing Working Group 2021 Projections

Georgios Symeonidis, Platon Tinios and Michail Chouzouris
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Georgios Symeonidis: Department of Statistics and Insurance Science, School of Finance and Statistics, University of Piraeus, Karaoli ke Dimitriou 80, 18534 Piraeus, Greece
Michail Chouzouris: Department of Statistics and Insurance Science, School of Finance and Statistics, University of Piraeus, Karaoli ke Dimitriou 80, 18534 Piraeus, Greece

Risks, 2021, vol. 9, issue 11, 1-18

Abstract: ?mplicit pension debt is attracting increasing attention worldwide as a driver of fiscal dynamics, operating in parallel to the (explicit) National Debt. A prudent examination of a state’s fiscal prospects should ideally encompass both, with due attention paid to the special features of each kind of debt. The explosion of government deficits as a result of the COVID-19 pandemic only adds to the urgency of understanding the scale and nature of issues around accounting for contingent liabilities. The reports of the EU Ageing working group, produced and published every three years are used to derive estimates of the stock of outstanding implicit pension debt from flows of projected deficits. This can be performed for all European member states. This paper uses the last two rounds of the Ageing Report (2021, 2018) and derives conclusions on the evolution of pension debt and its correlation to the external debt. The paper concludes that producing comparable estimates of IPD should become an important input in EU policy discussion.

Keywords: implicit pension debt; explicit debt; pension reform; ageing report (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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