Advanced Search
MyIDEAS: Login

Collective annuities and redistribution

Contents:

Author Info

  • CREMER, Helmuth
  • LOZACHMEUR, Jean-Marie
  • PESTIAU, Pierre

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

Abstract

In a number of countries one observes a steady decline in defined benefits pensions schemes,public or private, funded or unfunded, and a simultaneous expansion of defined contributionsplans. One of the consequences of this trend is to deprive individuals at the time of theirretirement from the benefit of collective annuitization. Collective annuities can be distinguished from individual ones in two ways. First, they tend to be cheaper because of their scale and because of inefficiencies in private annuity markets. Second they redistribute resources from short-lived to long-lived individuals. Our paper studies the role of collective annuities. Both their redistributive incidence and efficiency aspects are accounted for. We assume that lifetime is uncertain and that there is a positive correlation between longevity and earnings. Collective annuitization (in part or in total) can be imposed on private savings or it can be "bundled" with a redistributive pension scheme. We show that the case for applying collective annuitization to private savings is weak. The case is stronger when collective annuities are associated with redistributive pensions. However, even in that case, collective annuitization may mitigate the redistributive benefits associated with the pension system.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2007_96.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2007096.

as in new window
Length:
Date of creation: 01 Dec 2007
Date of revision:
Handle: RePEc:cor:louvco:2007096

Contact details of provider:
Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Phone: 32(10)474321
Fax: +32 10474304
Email:
Web page: http://www.uclouvain.be/core
More information through EDIRC

Related research

Keywords: annuities; public pensions; differential longevity;

Other versions of this item:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2007096. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.