Automatic Adjustment Mechanisms in Asian Pension Systems?

Author/Editor:

Elif C Arbatli ; Csaba Feher ; Jack J Ree ; Ikuo Saito ; Mauricio Soto

Publication Date:

December 13, 2016

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Automatic adjustment mechanisms (AAMs)—rules ensuring that certain characteristics of a pension system respond to demographic, macroeconomic and financial developments, in a predetermined fashion and without the need for additional intervention—have been introduced in many OECD countries to tackle public pension schemes’ deteriorating financial sustainability. Incorporating AAMs—in particular linking retirement age to life expectancy—can be an important part of pension reforms in Asia. If implemented early, AAMs could help prevent the need for sharp adjustments in the future, increase the predictability and inter-generational equity of pension systems and enhance confidence.

Series:

Working Paper No. 16/242

Subject:

English

Publication Date:

December 13, 2016

ISBN/ISSN:

9781475560336/1018-5941

Stock No:

WPIEA2016242

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

29

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