segunda-feira, abril 19, 2010

Years-on-pension increase

This chart illustrates an important  public finance and demography concept, life-expectancy at the actual age of retirement, years-in-retirment,  years-on-pension, or pension-years. 

Together with a chart below, on the percentage of retirement income coming from public (Government) pensions, this helps to explain the pensioner cost budget time-bombs, with pensions and pensioner health.

Pension reform and containment of pensioner health expenditure has become  an essential, if controversial component of good Public Financial Management in many of these countries

Sources:  The Economist online,  Feb 23rd 2010, OECD