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Alternative Retirement Income Strategies: A Cohort Analysis of Lifetime Redistribution

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  • M.E. ATKINSON
  • JOHN CREEDY
  • D.M. KNOX

Abstract

This paper compares the lifetime redistribution and progressivity, within a cohort of males, of two retirement income systems. The current government strategy in Australia is to increase the role of occupational superannuation and maintain a means‐tested age pension. The Institute of Actuaries of Australia has recommended a universal pension with a corresponding smaller role for occupational superannuation. In terms of lifetime inequality and progressivity measures, it is found that there is not a substantial difference between the two systems. Other issues, such as the benefit choice at retirement and differential mortality, are found to be more important in determining the lifetime redistributive impact of a retirement income strategy.

Suggested Citation

  • M.E. Atkinson & John Creedy & D.M. Knox, 1996. "Alternative Retirement Income Strategies: A Cohort Analysis of Lifetime Redistribution," The Economic Record, The Economic Society of Australia, vol. 72(217), pages 97-106, June.
    • Handle: RePEc:bla:ecorec:v:72:y:1996:i:217:p:97-106
    DOI: 10.1111/j.1475-4932.1996.tb00944.x
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    References listed on IDEAS

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    1. Bateman, Hazel & Kingston, Geoffrey & Piggott, John, 1993. "Taxes, Retirement Transfers, and Annuities," The Economic Record, The Economic Society of Australia, vol. 69(206), pages 274-284, September.
    2. Cameron, Lisa & Creedy, John, 1995. "Indirect Tax Exemptions and the Distribution of Lifetime Income: A Simulation Analysis," The Economic Record, The Economic Society of Australia, vol. 71(212), pages 77-87, March.
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    7. Lisa Cameron & John Creedy, 1995. "Indirect Tax Exemptions and the Distribution ot Lifetime Income: A Simulation Analysis," The Economic Record, The Economic Society of Australia, vol. 71(1), pages 77-87, March.
    8. David M. Knox, 1995. "The Age Pension: Means Tested or Universal?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(3), pages 107-110, July.
    9. Hazel Bateman & Geoffrey Kingston & John Piggott, 1993. "Taxes, Retirement Transfers, and Annuities," The Economic Record, The Economic Society of Australia, vol. 69(3), pages 274-284, September.
    10. M. E. Atkinson & John Creedy & D. M. Knox, 1995. "Planning Retirement Income in Australia: Routes through the Maze," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(4), pages 15-28, October.
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    Cited by:

    1. John Creedy & Guyonne Kalb, 2005. "Behavioural Microsimulation Modelling for Tax Policy Analysis in Australia: Experience and Prospects," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(1), pages 73-110, March.
    2. Stefan Fölster, 1999. "Social Insurance Based on Personal Savings," The Economic Record, The Economic Society of Australia, vol. 75(1), pages 5-18, March.
    3. John Creedy & Ross Guest, 2008. "The Labour Supply And Savings Effects Of Superannuation Tax Changes," Australian Economic Papers, Wiley Blackwell, vol. 47(1), pages 1-14, March.
    4. Creedy, John & Guest, Ross, 2008. "Changes in the taxation of private pensions: Macroeconomic and welfare effects," Journal of Policy Modeling, Elsevier, vol. 30(5), pages 693-712.
    5. Diana Warren, 2008. "Retirement Expectations and Labour Force Transitions: The Experience of the Baby Boomer Generation," Melbourne Institute Working Paper Series wp2008n24, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. John Creedy & Guyonne Kalb, 2005. "Behavioural Microsimulation Modelling With the Melbourne Institute Tax and Transfer Simulator(MITTS) : Uses and Extensions," Department of Economics - Working Papers Series 932, The University of Melbourne.
    7. Kudrna, George & Woodland, Alan, 2011. "An inter-temporal general equilibrium analysis of the Australian age pension means test," Journal of Macroeconomics, Elsevier, vol. 33(1), pages 61-79, March.
    8. Margaret E. Atkinson & John Creedy & David M. Knox, 1999. "Some implications of changing the tax basis for pension funds," Fiscal Studies, Institute for Fiscal Studies, vol. 20(2), pages 189-203, June.
    9. Alain Cuenca, 1999. "Transfers in Spanish state retirement pensions," Fiscal Studies, Institute for Fiscal Studies, vol. 20(2), pages 205-219, June.

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