On pension liabilities in Italy

National saving and social security in Italy

“…For the 1991 sample household social security wealth averaged at about 310 and 340 million lire (for the measures based on expectations and legislation, respectively), a level largely comparable with Beltrametti's (1995) aggregate time-series figures used in Section 3. The difference between the two measures of social security wealth was mostly concentrated in those occupations and sectors where early retirement is allowed but is apparently not accounted for in agents' expectations.…”

“…-Ε-: Social security wealth (retirees); -Χ-: social security wealth (gross); -Μ-: social security wealth (contributions); -Ε-: social security wealth (net). Source: Beltrametti (1995). rises dramatically from 0•6 in 1951 to about 4•5 in 1992 to drop to 2•9 after the 1992 reform.…”

“…It tells almost nothing about the † Social security wealth computations for 1993 assume changes in workers' retirement choices corresponding to the changes in the legal retirement age. See Beltrametti (1995), where the major assumptions behind pension wealth computations are spelled out in detail.…”

“…pension benefits of individuals currently at work. † In what follows, we benefit from the availability of the different components of w s (from Beltrametti, 1995) and introduce an estimate of the net of tax social transfers component of disposable income, so that w s = w sw +w sr −w sc and y d =y+y s (disregarding net government transfers to firms which are assumed to have been already netted out from all income variables) where w sw is the discounted stream of pension benefits for current workers, w sr is the discounted stream of pensions for current retirees, w sc is the discounted stream of social security contributions by current workers and we recall that y s is the (net of tax) pension income flow. In equation (1.1), then, one should replace y d with y and w s with w sg =w sr +w sw =w s +w sc .…”