A Mathematical Model for Social Security Systems with Dynamical Systems

Abstract

In this paper it is proposed a mathematical approach based ondynamicsystems to study the effect of the increase in the Social Security normalretirement age on the worker and on the dynamics of retiree populations.In order to simplify this initial effort, the proposed model does not includesome economic variables, such as wage growth, earnings or productivity.Here, we employ numerical simulations of the model to investigate the dy-namics of the labor force under different demographic scenarios. Analysisof this type of model with numerical simulations can help government economic planners make optimal strategies to sustain pension systems andforecast future trends of pensioner and worker populations.