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 …

. We use a multi-period overlapping generations model with a PAYG pension pillar, a funded pension pillar and a government …. Shocks are smoothed via the public debt and variations in the indexation of pension entitlements and the pension contribution … rate, which both respond to funding ratio of the pension fund. The intensity of these adjustments increases when the …

rights over the pension funds’ wealth. The problem is best resolved by the introduction of generational accounts. Modern … consumption and portfolio theory shows that the younger generations should have the higher equity exposure due to their human …

entitlements, the pension age must be automatically updated to keep the period in retirement constant. Alternatively, policy …Continuous longevity improvements and population ageing have led countries to modify national public pension schemes by … increasing the standard and early retirement ages in a discretionary, scheduled, or automatic way, and by making it harder for …