Evaluation and scoring proposal for international pension systems

Diego Rodolfo Gorostieta Ortega

doi:10.26360/2025_06

Authors

Diego Rodolfo Gorostieta Ortega Universidad Autónoma del Estado de México (México) https://orcid.org/0009-0003-3423-9773

DOI:

https://doi.org/10.26360/2025_06

Keywords:

pension systems, demography, scoring, time series, principal component analysis

Abstract

Pension systems around the world have undergone significant transformations in recent decades in response to profound demographic changes that affect their performance. Population aging, increased life expectancy, and declining birth rates have challenged the full development of these systems, despite various parametric and structural reforms. In this context, the present article proposes a scoring system to evaluate the performance of pension systems across different countries, taking into account the diversity of existing schemes. The evaluation is structured around three fundamental pillars: coverage, adequacy, and financial sufficiency, which aim to reflect the main functions a pension system should fulfil. To construct this measure, statistical projections based on time series are used, along with principal component analysis (PCA) techniques, which allow for the synthesis of multiple variables into a single indicator. As result, this approach facilitates cross-country comparisons, annual trend analysis, and the identification of areas for improvement in the design of more effective public policies.

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