Generational equity and social insurance

Area of Science:

• Social Gerontology
• Public Policy
• Economics

Background:

• Inter-generational transfer programs, such as Medicare, face criticism regarding generational equity.
• Concerns include future generations' unconsented burdens in pay-as-you-go systems, lack of contractual guarantees, and risks from benefit fluctuations.

Purpose of the Study:

• To evaluate the fairness of inter-generational transfer programs using the standard of generational equity.
• To explore the limitations of existing defenses, like the "lifespan prudential model," in addressing cohort-specific inequities.
• To propose a more robust defense acknowledging risk-sharing and solidarity.

Main Methods:

• Critical analysis of arguments concerning generational equity in social insurance.
• Evaluation of the "lifespan prudential model" for age-group resource allocation.
• Conceptual framework development for inter-generational program defense.

Main Results:

• Existing defenses inadequately address uncertainties and inequities faced by historical birth cohorts.
• Pay-as-you-go systems may impose unconsented burdens and risks on future generations.
• Generational equity concerns highlight potential unfairness in program design and outcomes.

Conclusions:

• A deeper defense of social insurance programs requires acknowledging inherent risk-sharing and solidarity.
• Efforts must focus on limiting inter-generational inequities within acceptable bounds.
• Balancing program sustainability with fairness for all birth cohorts is crucial.