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Enhancing Pension Adequacy While Reducing the Fiscal Budget and Creating Essential Capital for Domestic Investments and Growth: Analysing the Risks and Outcomes in the Case of Greece

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  • Georgios Symeonidis

    (Department of Statistics and Insurance Science, School of Finance and Statistics, University of Piraeus, Karaoli ke Dimitriou 80, 18534 Piraeus, Greece)

  • Platon Tinios

    (Department of Statistics and Insurance Science, School of Finance and Statistics, University of Piraeus, Karaoli ke Dimitriou 80, 18534 Piraeus, Greece)

  • Panos Xenos

    (Department of Statistics and Insurance Science, School of Finance and Statistics, University of Piraeus, Karaoli ke Dimitriou 80, 18534 Piraeus, Greece)

Abstract

Many countries around the world are resorting to mandatory funded components in their multi-pillar pension systems with the purpose of catering for the financial pressure from ageing. This paper aims at analysing the possible replacement rates for such a scheme, by choosing different assumptions and setting the best combined area for the expected result. Then, an approach for analysing the potential for the implementation of such a scheme in Greece is presented along with the actuarially projected expected benefit expenditure and respective accrued capital. A result of the introduction of such a component is expected to be the elevated replacement rate at retirement with a concurrent alleviation of the fiscal burden for the state. The projected scale of savings will also provide domestic financing for investments generating growth.

Suggested Citation

  • Georgios Symeonidis & Platon Tinios & Panos Xenos, 2020. "Enhancing Pension Adequacy While Reducing the Fiscal Budget and Creating Essential Capital for Domestic Investments and Growth: Analysing the Risks and Outcomes in the Case of Greece," Risks, MDPI, vol. 9(1), pages 1-17, December.
    • Handle: RePEc:gam:jrisks:v:9:y:2020:i:1:p:8-:d:470106
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    References listed on IDEAS

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    Cited by:

    1. María del Carmen Valls Martínez & José Manuel Santos-Jaén & Fahim-ul Amin & Pedro Antonio Martín-Cervantes, 2021. "Pensions, Ageing and Social Security Research: Literature Review and Global Trends," Mathematics, MDPI, vol. 9(24), pages 1-25, December.
    2. Georgios Symeonidis & Platon Tinios & Michail Chouzouris, 2021. "Public Pensions and Implicit Debt: An Investigation for EU Member States Using Ageing Working Group 2021 Projections," Risks, MDPI, vol. 9(11), pages 1-18, October.

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