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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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Web page: http://www.tinbergen.nl

Related research

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

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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. 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.
  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. 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.

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