In this paper we study the generational effects of a possible change in the Dutch pension system, namely the introduction of decreasing accruals. That would mean that pension entitlements for elderly workers will be lower, given the same premium, than for younger workers. Using a very simple model, we show that we can replicate CPB results on this topic. Moreover we show that the actual amounts are fairly insensitive to the level of interest rate between 1%-3%

Herewith we do want to mention that this is no new topic, this work was presented earlier as occasional paper 05 / 2017. The publication can be found here.