Using an overlapping generations model, two new indicators of public pension system sustainability are proposed: the … pension space, which measures the capacity to pay for pension expenditures out of labour taxation, and the pension space … exhaustion probability reflecting demographic uncertainties. These measures reveal that the pension spaces of advanced economies …

reforming the system, highlighting their potential impact on pension finances, public budgets, and retirement incomes. … scheme ("second pillar") that will provide increasing amounts of supplementary pensions to those entering retirement in the … future development under current rules. Building on lessons from recent pension theory, we also discuss options for further …