Pension and Intergenerational Balance - A case study of Norway, Poland and Germany using Generational Accounting

Natalie Laub, Christian Hagist

Abstract


In this paper we apply the method of Generational Accounting to analyse whether today’s government policy burdens future generations with a heavier load than current generations. We analyse pay-as-you-go pension systems and their reforms in Norway, Poland and Germany. Our results show that, through these reforms, pension systems in all three countries became more intergenerationally balanced as the implicit debt to be paid by future generations was reduced. However, the burden is shared differently: in Norway
current pensioners have to contribute to enhancing the financial sustainability of the pension system while Poland and Germany seem to protect current pensioners at the expense of younger generations.

Keywords


Generational Accounting; Pension Reform; International Comparison; Sustainability; Intergenerational Redistribution

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DOI: http://dx.doi.org/10.24357/igjr.11.2.631

Copyright (c) 2017 Natalie Laub, Christian Hagist

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This work is licensed under a Creative Commons Attribution 4.0 International License.