 Are the Pension Systems of Low Fertility Populations Sustainable?Nan Li ()
Chapter Chapter 14 in Dynamic Demographic Analysis, 2016, pp 273-283 from Springer Abstract: Abstract The decline in fertility levels to below replacement level is a common trend that will lead to population decline and reduce the pressure on the environment and on natural resources. On the other hand, it will also cause population aging and higher pension burdens of pay-as-you-go systems. Funded pension systems transfer cohorts’ saving to consumption and their pension burdens are invariant to fertility change. Comparing the difference between the pension burdens of the two systems in certain periods could provide relevant information to the decision on whether or not to establish funded pension systems. A time-based cohort old-age dependency ratio is proposed in this chapter, which measures the pension burden of a funded system and is comparable to that of a pay-as-you-go system. This time-based cohort old-age dependency ratio can be computed for all the countries and areas of the world, using only demographic data. Examples are given for China, Japan and the Republic of Korea. Keywords: Pension systems; Dependency ratios; Period; Cohort (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:ssdmcp:978-3-319-26603-9_14 Ordering information: This item can be ordered from DOI: 10.1007/978-3-319-26603-9_14 Access Statistics for this chapter More chapters in The Springer Series on Demographic Methods and Population Analysis from Springer |
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