Investor Presentaiton
60%
50%
Policy option: pro-rated basic component in combination
with accruals from the first year of contributions
Gross pension benefit (in % of average wage) by career length, for average earners at the statutory retirement age
Basic (pro-rated)
40%
30%
Parameters of the
system can be adjusted
to a given level of total
spending!
20%
10%
Earnings related (proposed)
Basic (current)
- Earnings related (current)
0%
1 2
3 4 5 6
7
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46
Career length
Can maintain similar
benefits as those
provided by the
current system
Provides benefits in
line with contributions
to the system
Parameters can be
adjusted to target a
given level of total
spending
Source: Figure 1.32.
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