4 February, 2025
Due to ongoing population aging, the PAYGO systems have run into serious funding problems. This has led many countries to constantly adjust their parameters, or to seriously deplete their public finances, creating a situation that could become unsustainable over time.
The “Key parameters in the public PAYGO systems“ table is presented to study the current and future situation of these systems, reporting on the current and future official retirement ages, contribution rates, the estimated net replacement rate, public PAYGO system deficits (% of GDP), and the number of years of contribution required for accessing a full or partial pension, for a group of countries in Europe, the Americas and Asia.
Some trends found are the following:
Most countries require a minimum number of years of contributions to the system for accessing a full pension, fluctuating between 15 years (Brazil, in the case of women at the official retirement age) and 45 years (Belgium). Other countries, in turn, set a minimum number of years of contribution to access a partial pension, ranging from 1 year (France and the United Kingdom) to 30 years (Belgium). It is important to note that those who do not meet the requirements for accessing a partial pension do not receive a contributory pension, and therefore lose everything they have contributed during their working lives.
4 February, 2025
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