Financial Sustainability of the Algerian Retirement System: A Perspective Analysis of the 50 Coming Years

Farid Flici and Frédéric Planchet ()

Post-Print from HAL

Abstract: Maintaining retirement systems stability is nowadays a big challenge for all countries. Such sustainability is widely related to a set of time-varying elements that include population structure, longevity, employment, and affiliation to social security. For the case of Algeria, public retirement works according to the pay-as-you-go principle and equilibrium is maintained by public subsidy. But, population is now aging, and longevity is improving. The retired population is supposed to grow faster than the population at working age. Consequently, it will be harder to keep equality between retirement incomes and outcomes especially if we consider the weakness of the demand for social security among workers. The latter remains widely dependent on public employment; the employees of the private sector are less covered. In the present paper, we aim to simulate the future evolution of the demographic and economic factors affecting the stability of the Algerian retirement system in order to show their long-run effect. As a result, we found that it will be impossible to keep the retirement sustainability within its current design. The accelerating aging process imposes to undertake heavy reforms in the near future.

Keywords: Retirement; Experience mortality; Contribution rates; Aging; Longevity; Pay-as-you-go (search for similar items in EconPapers)
Date: 2020-03-21
References: Add references at CitEc
Citations:

Published in In: Marta Peris-Ortiz, José Álvarez-García, Inmaculada Domínguez-Fabián, Pierre Devolder. Economic Challenges of Pension Systems, Springer, Cham, pp. 275-309, 2020, 978-3-030-37911-7. ⟨10.1007/978-3-030-37912-4_13⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Chapter: Financial Sustainability of the Algerian Retirement System: A Perspective Analysis of the 50 Coming Years (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02959072

DOI: 10.1007/978-3-030-37912-4_13

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().