International Day of Older Persons: Honouring pension promises for older people
The International Day of Older Persons is celebrated on 1 October. For the social security of older persons, a key issue relates to the sustainability and adequacy of old-age pension programmes.
Globally, social security scheme design and financing is under increasing scrutiny. For old-age pension schemes – usually one of the largest items in social security budgets – it is essential to appropriately assess the financial implications of the benefit promises made to current and future retirees.
How we assess the implications of promises made by social security systems to current and future retirees will affect the decisions taken regarding key features of systems – including how we define the “social contract” between generations. This is much more than a discussion about financial sustainability and the adequacy of benefits; it poses big questions for our societies about the nature of social justice and how we achieve inter- and intra-generational equity.
To find answers to these questions, deliberations need also to take into account a wide range of factors and assumptions. Among these, the influence of increasingly fragmented labour markets, as well as the related impacts of the digital economy, demographic changes and a low interest rate environment, are prominent.
As an issue of great topical interest, the financial implications of social security retirement system promises will be one important area of discussion at the 19th ISSA International Conference of Social Security Actuaries, Statisticians and Investment Specialists that will take place in Kuwait City, Kuwait, from 6 to 8 November 2018.
To accompany the conference, the International Social Security Review (Vol. 71, No. 3, 2018) has prepared a special issue – Actuarial and financial reporting of social security obligations – as an essential “go to” reading source to better inform this important debate.