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Building and Interpreting Macro/Micro Estimates of Accrued‐to‐Date Pension Liabilities: F rench Reforms as a Case Study
Author(s) -
Blanchet Didier,
Le Minez Sylvie,
Marino Anthony
Publication year - 2017
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/roiw.12207
Subject(s) - macro , pension , microsimulation , economics , sustainability , micro level , perspective (graphical) , macro level , public economics , macroeconomics , actuarial science , microeconomics , computer science , finance , economic impact analysis , engineering , transport engineering , biology , programming language , ecology , artificial intelligence
Estimates of accrued‐to‐date pension liabilities ( ADL ) should become more widely accessible to statisticians and decision makers in the near future, in application of new SNA requirements. This raises two questions: how can such estimates be routinely produced, and what for? Microsimulation helps in answering the first question of the “how.” It allows ADL computations that take into account the complexity of pension rules. Concerning the “what for” question, it is known that ADL are not an indicator of global financial sustainability. Messages they convey are more interesting at the micro level, from a household perspective. This fosters the case for microsimulation which spontaneously generates consistent micro/macro results. We illustrate these points using the F rench situation as a case study. We emphasize one aspect of F rench reforms that may concern other countries as well: the move to price indexation and the connection it creates between sustainability and growth assumptions.