Publication

National Pension Reform and Intergenerational Fairness

The 2025 parametric reform postponed the National Pension fund's projected depletion from 2057 to 2065 but left the post-depletion structure unchanged: benefit spending is projected to reach 9 percent of GDP against contribution revenue below 3 percent. Official benefit-to-contribution ratios fall from 2.90 for those born in 1970 to 1.75 for those born in 2005, so the reform's burden grows for later cohorts. The brief reviews how 24 OECD countries operate automatic adjustment mechanisms, from Japan's macroeconomic slide to Germany's two-way sustainability factor, and presents the Institute's survey (RIO 2026-03): 65.9 percent call the system unfair across generations, rising to 84 percent among those under 40, while a proposed automatic adjustment mechanism draws more opposition than support even among reform advocates. It recommends regular publication of generational-equity figures, disclosure of design details before any adoption debate, and transparency about who bears the cost of protecting current recipients.