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Reality and Challenges of Pension Schemes in Tunisia

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  • Chourouk Houssi

Abstract

This article tries to establish whether the statutory system of pensions based on the pay‐as‐you‐go principle is financially defensible in the context of an ageing population. Our study uses the case of Tunisia. The hypothesis that the population is ageing has been confirmed by a prospective study of the Tunisian population to 2050. A simulation of the pension schemes reveals a deficit which is growing at an exponential rate and which must inevitably jeopardize the financial viability of the schemes. Pension reform is thus unavoidable. After studying a number of experiences from other countries, which we describe, we propose a switch to notional defined‐contribution schemes and/or organized in tiers.

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  • Chourouk Houssi, 2005. "Reality and Challenges of Pension Schemes in Tunisia," International Social Security Review, John Wiley & Sons, vol. 58(1), pages 99-120, January.
    • Handle: RePEc:wly:intssr:v:58:y:2005:i:1:p:99-120
    DOI: 10.1111/j.1468-246X.2005.00212.x
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    Cited by:

    1. EL-HOUJJAJI, Hind & ECHAOUI, Abdellah, 2020. "Assessing the financial sustainability of parametric pension system reforms: The case of Morocco," MPRA Paper 98912, University Library of Munich, Germany.

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