<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In several developed countries, the baby boomers will come to retire in the next decades. This problem will threaten the sustainability and the intergenerational equity of mandatory pay-as-you-go pension systems because they will have to drain the “demographic wave” of retirees with a relatively small number of contributors. In this paper, we give the operating method developed on the basis of a general principle, which a defined contribution pension system, in a state of stable sustainability, should adopt to control these issues in the presence of a demographic wave. In the theoretical profile, our approach breaks and overcomes the classical juxtaposition between funded and pay-as-you-go pension schemes, carrying out the integration of the two financial methods.</p></abstract>

In several developed countries, the baby boomers will come to retire in the next decades. This problem will threaten the sustainability and the intergenerational equity of mandatory pay-as-you-go pension systems because they will have to drain the “demographic wave” of retirees with a relatively small number of contributors. In this paper, we give the operating method developed on the basis of a general principle, which a defined contribution pension system, in a state of stable sustainability, should adopt to control these issues in the presence of a demographic wave. In the theoretical profile, our approach breaks and overcomes the classical juxtaposition between funded and pay-as-you-go pension schemes, carrying out the integration of the two financial methods.

Controlling a demographic wave in defined contribution pension systems

Pure Mathematics and Applications

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Controlling a demographic wave in defined contribution pension systems"}

In several developed countries, the baby boomers will come to retire in the next decades. This problem will threaten the sustainability and the...

Controlling a demographic wave in defined contribution pension systems

Published Online: Sep 01, 2018

Page range: 1 - 18

Received: Apr 29, 2015

DOI: https://doi.org/10.1515/puma-2015-0001

Keywords
Mandatory pension system control, baby boom demographic wave, logical sustainability, intergenerational equity

© 2018 Massimo Angrisani et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Controlling a demographic wave in defined contribution pension systems

Published Online: Sep 01, 2018

Page range: 1 - 18

Received: Apr 29, 2015

DOI: https://doi.org/10.1515/puma-2015-0001

KeywordsMandatory pension system control, baby boom demographic wave, logical sustainability, intergenerational equity

© 2018 Massimo Angrisani et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Mandatory pension system control, baby boom demographic wave, logical sustainability, intergenerational equity