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Differentiating Indexation in Dutch Pension Funds

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  • Roel Beetsma

    ()

  • Alessandro Bucciol

    ()

Abstract

We investigate numerically how indexation of funded pensions for inflation can be differentiated across the various groups of fund participants. The pension arrangement is modelled after the Dutch situation. While the aggregate welfare consequences are small, group-specific consequences are more substantial with the workers and future born losing and retirees benefitting from a shift away from uniform indexation. Those welfare shifts result from systematic redistribution of welfare rather than shifts in the benefit of risk sharing provided by the system.

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File URL: http://hdl.handle.net/10.1007/s10645-011-9170-9
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Bibliographic Info

Article provided by Springer in its journal De Economist.

Volume (Year): 159 (2011)
Issue (Month): 3 (September)
Pages: 323-360

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Handle: RePEc:kap:decono:v:159:y:2011:i:3:p:323-360

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Web page: http://www.springerlink.com/link.asp?id=100260

Related research

Keywords: Indexation; Funded pensions; Welfare effects; Pension buffers; Stochastic simulations; H55; I38; C61;

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Citations

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Cited by:
  1. Karolina Goraus & Krzysztof Makarski & Joanna Tyrowicz, 2014. "Does social security reform reduce gains from increasing the retirement age?," Working Papers 2014-03, Faculty of Economic Sciences, University of Warsaw.
  2. Marcin Bielecki & Karolina Goraus & Jan Hagemejer & Joanna Tyrowicz, 2014. "The Sooner The Better - The Welfare Effects of the Retirement Age Increase Under Various Pension Schemes," Working Papers 2014-12, Faculty of Economic Sciences, University of Warsaw.
  3. Dirk Broeders & Paul Hilbers & David Rijsbergen, 2013. "What drives pension indexation in turbulent times? An empirical examination of Dutch pension funds," DNB Working Papers 368, Netherlands Central Bank, Research Department.
  4. Dirk Broeders & Paul Hilbers & David Rijsbergen & Ningli Shen, 2014. "What Drives Pension Indexation in Turbulent Times? An Empirical Examination of Dutch Pension Funds," De Economist, Springer, vol. 162(1), pages 41-70, March.

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