Towards an adequate and sustainable replacement rate in defined benefit pension systems: the case of Spain
Alonso Fernández, Juan José ; Devesa Carpio, José Enrique ; Devesa Carpio, Mar ; Domínguez Fabián, Inmaculada ; Encinas Goenechea, Borja ; Meneu Gaya, Robert
International Social Security Review
2018
71
1
January - March
51-70
pension scheme ; defined benefit plan ; pension fund ; earnings replacement rate
Social protection - Old age benefits
https://doi.org/10.1111/issr.12158
English
Bibliogr.
"The main objective of this article is to determine, based on internal data, replacement rates for a defined benefit pension system, with two aims: the adequacy of pensions – measured in terms of the expenditure of retirees – and the sustainability of the system. For this purpose two instruments are used: the internal rate of return, and techniques based on systems of notional accounts. These figures, derived from internal data, will serve, by comparison with the replacement rate of the system, to assess whether the system tends more towards adequacy or sustainability. The system studied is that of Spain."
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