Financial and demographic risks impact on a pay-as-you-go pension fund

  • Roberta Melis
  • Alessandro Trudda


This paper studies the financial sustainability of a pay-as-you-go pension fund within a stochastic framework. To this aim, a set of risk indicators of the solvency of the fund are also constructed. Financial and demographic risks are analyzed by investigating and comparing their impact on the evolution of the fund. Numerical results are approached by means of a simulation methodology, on the Italian pension funds.

Key words

Pension funds demographic risk pay-as-you-go new entrants 



The authors acknowledge the financial support provided by the Banco di Sardegna Foundation (prot. 1637/2009.0377). Roberta Melis acknowledges the financial support provided by the Regione Autonoma della Sardegna (L.R. 7/2007).


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Copyright information

© Springer-Verlag Italia 2012

Authors and Affiliations

  1. 1.DEIR-University of SassariSassariItaly

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