In preparation of the 2018 Pension Adequacy Report by the European Commission and the Social Protection Committee, teams from Belgium, Sweden and Italy use their microsimulation models to simulate the possible developments of pension adequacy while taking into account the set of economic and demographic projections developed by the AWG. The results of this exercise complement the AWG simulations of pension expenditures in a context of demographic. The results described in detail in this report were summarised in section 5.1.2. of the 2018 Pension Adequacy Report.
Since a couple of decades, the pension policy of member states is a focal point of attention on the European level. Securing financial sustainability by the AWG requires a prospective vision on ageing, labour market developments and social policy. But a sensible assessment of financial sustainability cannot do without taking into account the prospect ive development of pension adequacy. The SPC does this through prospective theoretical replacement rates and benefit ratios. However, prospective values of the key ISG indicators, such as the risk of poverty rate or the Gini are not available.