Studying and Analyzing Influential Demographic Variables on Support Ratio in Iranian Social Security Pension Fund Using System Dynamics

Subject Areas : Industrial Management

zahra karimian sichani ¹ , mohammad hassan cheraghali ² , ali dehghani ³

1 - Head of Statistics and Information Technology Department of Insurance Deputy - Social Security Organization
2 - Assistant Prof., Faculty of Management, Islamic Azad University, South Tehran Branch, Tehran, Iran
3 - Assistant Prof., Faculty of Economics and Accounting, Islamic Azad University, South Tehran Branch

Received: 2020-11-13 Accepted : 2021-05-22 Published : 2021-08-22

Keywords: pension fund, Population Variables, Support Ratio, System Dynamics,

Abstract :

Evaluation and reform of pension systems are among the complex issues that due to the multiplicity of variables affecting each other and significant changes in the variables in the long term horizons, they can not be easily studied and analyzed. The purpose of this article is to study and analyze demographic variables on the support ratio(Ratio of insured to pensioners ) in Iran’s Social Security Pension Fund. This shows to some extent the ratio of input to output of the fund, and based on it, the pressure on the fund can be estimated according to the amount of current insurance premiums and pension amounts. In this article, using information and statistics of mentioned fund and Iran Statistics Center in the years from 2016 to 2018, a model based on system dynamics was designed and By testing the model under certain conditions, reproducing past behavior and examining different policies, the model was validated. By 2033, the country's elderly population will double, while the working age population will grow by nearly 12 percent. These changes will affect the demographic structure, Also, according to the forecast, if the current conditions are maintained, the support ratio of the Social Security Fund will reach 2.19 by 2033. Informal (non-salaried) job participation, unemployed youth employment, women's economic participation and fertility rate are the most important influential population variables that can increase the support ratio to 3, 1/2, 1/4 0/5 units respectively ،if appropriate policies and planning are implemented.

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