Public investment funds and value-based generational accounting

We demonstrate how the methodology of value-based generational accounting reveals the position of various generations for any institutional arrangement sharing revenues and losses withcurrent and future generations. The illustration in this section is based on a stand-alone pension fund with intergenerational risk sharing, but can also be applied to sovereign wealth funds andpublic finance. Changes in the stylized pension contract may easily lead to sizeable intergenerational value transfers as the allocation of risk amongst stakeholders changes substantially. We evaluate three types of policy reforms that are closely related to pension reforms in the past and current debate about pension reform: improvement of solvency risk management, the effect of a more conservative investment mix due to an ageing society, and challenges of life cycle theory

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

MORE ABOUT NETSPAR


Mission en strategy           •           Network           •           Organisation           •          Magazine
Board Brief            •            Actionplan 2019-2023           •           Researchagenda

ABOUT NETSPAR

Our partners

B20160708_university of groningen
B20160615_pggmgroengrijs_grijswaarden_small
B20220518_BNP Paribas logo_voettekst
B20211201_Cardano_Logo 2021_website
B20160708_afm
View all partners