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Reality and Challenges of Pension Schemes in Tunisia
Author(s) -
Houssi Chourouk
Publication year - 2005
Publication title -
international social security review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.349
H-Index - 28
eISSN - 1468-246X
pISSN - 0020-871X
DOI - 10.1111/j.1468-246x.2005.00212.x
Subject(s) - notional amount , pension , statutory law , context (archaeology) , population ageing , czech , population , economics , actuarial science , projections of population growth , business , public economics , political science , sociology , finance , population growth , geography , law , demography , linguistics , philosophy , archaeology
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.