Retirement Policies, Sustainability and Inequality: a Comprehensive Framework

Today, pension systems must deal with two open problems: their financial sustainability while facing both worldwide population aging and diffuse public finance distress; and their relationship with within- and between-generation rising inequality. These concerns are calling for structural reforms in many countries. We propose a new theoretical model to study the trade-offs entailed by all the possible combinations of retirement schemes (funded vs. unfunded and defined benefit vs. defined contribution) with respect to both sustainability and inequality. Calibrating this model on different European economies (Germany, UK, France, Netherlands and Italy) allows us to characterize the optimal mixture of different schemes given a government’s redistribution preferences, therefore comparing countries and systems. Moreover, we plan to build a new historical database of pension reforms in those countries. Using this data and our model, we perform an inverse  optimum analysis to assess the implicit welfare weights that have been attached by retirement policies to different  generations over the last decades.

Read the paper here.

Netspar, Network for Studies on Pensions, Aging and Retirement, is een denktank en kennisnetwerk. Netspar is gericht op een goed geïnformeerd pensioendebat.

MEER OVER NETSPAR


Missie en strategie           •           Netwerk           •           Organisatie           •          Podcasts
Board Brief            •            Werkprogramma 2019-2023           •           Onderzoeksagenda

OVER NETSPAR

Onze partners

B20221103_Zwitserlevengrayscale
B20220412_SPIN_logo+naam_2xPMS_2_voettekst
B20210909_SPMS_logo download greyscale smaller
B20200924_Ortec Finance logo 250px_banner_small
B20210618_Achmea_logo_grey
Bekijk al onze partners