Optimal strategies to restore long-term sustainability of pension systems | University of Oxford

Optimal strategies to restore long-term sustainability of pension systems

Speaker
Dr Carmen Boado-Penas
Event date
Event time
14:00 - 15:30
Venue
Oxford Institute of Population Ageing
66 Banbury Road
Oxford
OX2 6PR
Venue details

Seminar Room

Event type
Lectures and seminars
Event cost
Free
Disabled access?
Yes
Booking required
Not required

The aim of this paper is to design an automatic balancing mechanism to restore the sustainability of a pay-as-you-go (PAYG) pension system based on changes in its main variables, such as the contribution rate, normal retirement age and indexation of pensions. Using nonlinear optimisation, this mechanism, identifies and applies an optimal path of these variables to a PAYG system in the long run and absorbs fluctuations in longevity, fertility rates, salary growth or any other events in a pension system.