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Differentiating Indexation in Dutch Pension Funds

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  • Roel Beetsma

    (University of Amsterdam)

  • Alessandro Bucciol

    (University of Verona, University of Amsterdam)

Abstract

This discussion paper led to a publication in 'De Economist' , 159(3), 323-360. We investigate numerically how indexation of funded pensions for inflation can be differ-entiated across the various groups of fund participants. The pension arrangement is modelledafter 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 bene-fitting from a shift away from uniform indexation. Those welfare shifts result from systematicredistribution of welfare rather than shifts in the benefit of risk sharing provided by the system.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 10-128/2.

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Date of creation: 14 Dec 2010
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Handle: RePEc:dgr:uvatin:20100128

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

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Citations

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Cited by:
  1. 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, Springer, vol. 162(1), pages 41-70, March.
  2. Jan Hagemejer & Marcin Bielecki & Karolina Goraus & Joanna Tyrowicz, 2014. "The Sooner The Better - The Welfare Effects of the Retirement Age Increase Under Various Pension Schemes," EcoMod2014 6868, EcoMod.
  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, Netherlands Central Bank, Research Department 368, Netherlands Central Bank, Research Department.
  4. 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, Faculty of Economic Sciences, University of Warsaw 2014-12, Faculty of Economic Sciences, University of Warsaw.
  5. Karolina Goraus & Krzysztof Makarski & Joanna Tyrowicz, 2014. "Does social security reform reduce gains from increasing the retirement age?," Working Papers, Faculty of Economic Sciences, University of Warsaw 2014-03, Faculty of Economic Sciences, University of Warsaw.

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