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Differentiating Indexation in Dutch Pension Funds

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  • Roel M. W. J. 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://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2010/wp-cesifo-2010-12/cesifo1_wp3305.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3305.

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Date of creation: 2010
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Handle: RePEc:ces:ceswps:_3305

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Keywords: indexation; funded pensions; welfare effects; pension buffers; stochastic simulations;

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References

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Cited by:
  1. 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.
  2. 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.

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