PENSION REFORM AND INTERGENERATIONAL REDISTRIBUTION IN Abstract:

We apply the technique of generational accounting so as to quantify the effects of the 1998 Hungarian pension reform on sustainability and intergenerational redistribution. We find that the initially severe long-term imbalance has been significantly reduced. The effects of particular measures of the reform package are shown separately. By completing the data matrix with retrospective figures, we also compare lifetime net contributions of cohorts. It reveals that the first fifty cohorts entering the PAYG scheme came out winners of intergenerational redistribution. We also find that currently living generations will foot the bill of the ill-designed system instead of leaving it to the future. The reform added to th