Ministry of Finance - Long-term prospects for public finances in Austria

• Project funded by the Austrian Federal Ministry of Finance

This project simulates future pension expenditure up to 2060 using the dynamic microsimulation model microDEMS. The model is expanded to include individual pension accounts based on the simulation of individual employment careers. The model uses individual administrative pension insurance data to calculate the initial pension account amount and the annual partial credit amount, depending on personal characteristics. Due to its detailed implementation of the Austrian pension system (including differentiation of all pension types and cohort-specific eligibility requirements), microDEMS provides a more accurate and detailed projection of future pension expenditure than previous macro approaches.