Automatic Adjustment Mechanisms in Asian Pension Systems?

By Elif C Arbatli Saxegaard, Csaba Feher, Jack J Ree, Ikuo Saito, Mauricio Soto

December 13, 2016

Preview Citation

Format: Chicago

Elif C Arbatli Saxegaard, Csaba Feher, Jack J Ree, Ikuo Saito, and Mauricio Soto. Automatic Adjustment Mechanisms in Asian Pension Systems?, (USA: International Monetary Fund, 2016) accessed December 21, 2024

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.

Subject: Aging, Expenditure, Health, Labor, Pension spending, Pensions, Population and demographics, Retirement

Keywords: AAM adjustment, Aging, Applying Introducing AAMs, Asia and Pacific, Automatic Adjustment Mechanisms, Benefit indexation, Pension spending, Pension system, Pension System Reform, Pensions, Price indexation, Price inflation, Replacement ratio, Retirement, State-of-the-world Introducing AAMs, WP

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/242
Stock No:

WPIEA2016242
ISBN:

9781475560336
ISSN:

1018-5941

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