Simulation of Pension Reform in Algeria (Econometric Study)

Abstract

This studyaims to build simulation scenarios for real solutions to reduce the problem of pension funddeficits. The Fund'sdeficit, whichplays an important role in the Algerian social protection system, has recentlyworsened. The main reason for the growingdeficit gap is the high life expectancy of retirees, with the category of workersunable to finance the Fund'sresourcesowing to the decrease in the size of this group compared to the hugebacklog of retirees. The samplestudywas in the community of non-performingworkers and retireesbased on local databases of social securityfunds, where changes were made in the pension calculation format by proposingreform scenarios. The results of the studyconcludedthatraising the retirement agefrom 60 to 65 yearsis the best solution to restoring the financial balance of the pension fund and with the least possible damage to generationalwell-being.