63-B
Basic Satisfaction Levels for Retirees
Wednesday, April 2, 2014: 9:30 a.m.
Washington Room 6 (Washington Marriott Wardman Park)
Regulated Defined Contribution pension schemes are widespread among America Continental. Pension actuaries currently use the pension replacement rate as a benchmark to measure how much a worker’s pre-retirement income is replaced by its pension. Although this measure is intended to provide a sense of efficiency of the system, the post-retirement challenge for workers is to be able to purchase at least the basic basket and income projections used in pension replacement benchmark rate don’t capture this because worker’s income is not efficiently linked to macroeconomic variables in Latin America. This article proposes the use of macroeconomic variables such as the Consumer Price Index and the Basic Basket to develop a benchmark indicator of basic income replacement. This indicator is calculated along with all the basic satisfaction levels post-retirement by country and, compared to illustrate the efficiency level of their current Defined Contribution schemes.
Presentation 1