Abstract

In this paper we apply the method of Generational Accounting to analyse whether today’s government policy burdens future generations with a heavier load than current generations. We analyse pay-as-you-go pension systems and their reforms in Norway; Poland and Germany. Our results show that; through these reforms; pension systems in all three countries became more intergenerationally balanced as the implicit debt to be paid by future generations was reduced. However; the burden is shared differently: in Norway current pensioners have to contribute to enhancing the financial sustainability of the pension system while Poland and Germany seem to protect current pensioners at the expense of younger generations.