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From the Replacement Rate to the Synthetic Indicator: A Global and Gender Measure of Pension Adequacy in the European Union

Author

Listed:
  • Juan-José Alonso-Fernandez

    (Universidad de Extremadura)

  • Robert Meneu-Gaya

    (University of Valencia)

  • Enrique Devesa-Carpio

    (University of Valencia)

  • Mar Devesa-Carpio

    (University of Valencia)

  • Inmaculada Dominguez-Fabian

    (University of Extremadura)

  • Borja Encinas-Goenechea

    (University of Extremadura)

Abstract

To measure the adequacy of pension systems in the world, one of the most commonly used indicators is the Replacement Rate. Our work is based on the statement that this indicator is imperfect itself to measure adequacy because it does not collect the multiple dimensions that it involves while being a static measurement. Consequently and based on the data provided by “The 2015 Pension Adequacy Report: current and future income adequacy in old age in the European Union” of the European Commission, in this paper we select a set of variables that are considered representative to measure the adequacy of pension systems from a dynamic and multidimensional perspective, and based on them, a synthetic adequacy indicator is developed. This indicator aims to compare European pension systems from the adequacy objective and to carry out continuous monitoring of the effects that the reform processes may have on the adequacy of pensions. The analysis is completed with the calculation of a gender indicator on pension adequacy for the European Union (EU-28) which identifies the still existing gap between men and women.

Suggested Citation

  • Juan-José Alonso-Fernandez & Robert Meneu-Gaya & Enrique Devesa-Carpio & Mar Devesa-Carpio & Inmaculada Dominguez-Fabian & Borja Encinas-Goenechea, 2018. "From the Replacement Rate to the Synthetic Indicator: A Global and Gender Measure of Pension Adequacy in the European Union," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 165-186, July.
    • Handle: RePEc:spr:soinre:v:138:y:2018:i:1:d:10.1007_s11205-017-1653-x
    DOI: 10.1007/s11205-017-1653-x
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    References listed on IDEAS

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    1. Ebert, Udo & Welsch, Heinz, 2004. "Meaningful environmental indices: a social choice approach," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 270-283, March.
    2. Robert Holzmann & Ufuk Guven, 2009. "Adequacy of Retirement Income after Pension Reforms in Central, Eastern, and Southern Europe : Eight Country Studies," World Bank Publications - Books, The World Bank Group, number 2610.
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    5. Grech, Aaron George, 2013. "How best to measure pension adequacy," MPRA Paper 46126, University Library of Munich, Germany.
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    8. Filip Chybalski & Edyta Marcinkiewicz, 2016. "The Replacement Rate: An Imperfect Indicator of Pension Adequacy in Cross-Country Analyses," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 99-117, March.
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    Cited by:

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