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Pension Payments and Receipts by New Zealand Birth Cohorts, 1916–1986

Author

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  • Andrew Coleman

    (Motu Economic and Public Policy Research and the New Zealand Treasury)

Abstract

This paper analyses how much different cohorts can expect to contribute into the PAYGO-funded New Zealand Superannuation scheme, and contrasts it with the amount each cohort can be expected to obtain in benefits if the current scheme is continued. The analysis is based on historic census and contributions data and SNZ projections of future population trends. The results show that cohorts born prior to 1980 can expect to pay half as much as they can expect to get in retirement benefits, because of the small number of pension recipients when they made the bulk of their payments.

Suggested Citation

  • Andrew Coleman, 2012. "Pension Payments and Receipts by New Zealand Birth Cohorts, 1916–1986," Working Papers 12_11, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:12_11
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    File URL: https://motu-www.motu.org.nz/wpapers/12_11.pdf
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    References listed on IDEAS

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    1. Marko Köthenbürger & Panu Poutvaara, 2006. "Social Security Reform and Investment in Education: Is There Scope for a Pareto Improvement?," Economica, London School of Economics and Political Science, vol. 73(290), pages 299-319, May.
    2. Assar Lindbeck & Mats Persson, 2003. "The Gains from Pension Reform," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 74-112, March.
    3. A. J. Auerbach & M. Feldstein (ed.), 2002. "Handbook of Public Economics," Handbook of Public Economics, Elsevier, edition 1, volume 4, number 4.
    4. Martin Feldstein & Andrew Samwick, 1997. "The Economics of Prefunding Social Security and Medicare Benefits," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 115-164, National Bureau of Economic Research, Inc.
    5. A. J. Auerbach & M. Feldstein (ed.), 2002. "Handbook of Public Economics," Handbook of Public Economics, Elsevier, edition 1, volume 3, number 3.
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    Cited by:

    1. Christopher Ball, 2014. "Modelling retirement income in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 48(2), pages 209-225, August.
    2. Lewis Evans & Neil Quigley, 2013. "Intergenerational Contracts and Time Consistency: Implications for Policy Settings and Governance in the Social Welfare System," Treasury Working Paper Series 13/25, New Zealand Treasury.

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    More about this item

    Keywords

    retirement incomes; intergenerational transfers; government pension schemes;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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