"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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