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Ageing-driven pension reforms

Author

Listed:
  • Jan Bonenkamp

    (APG Asset Management)

  • Lex Meijdam

    (Tilburg University)

  • Eduard Ponds

    (APG Asset Management
    Tilburg University)

  • Ed Westerhout

    (Tilburg University
    CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

This paper stems from the observation that there are two worldwide trends, pension reform and population ageing, and asks whether the two may be related. Exploring the cases of pension reform in different countries, we find that, although they are very different, the cases share a common characteristic: they shift risks away from workers towards those who are retired. Furthermore, population ageing, by increasing the weight of the elderly relative to working generations, raises the price of intergenerational risk sharing. Combining these findings, we argue and show formally that pension reform can be seen as a welfare-best response to population ageing.

Suggested Citation

  • Jan Bonenkamp & Lex Meijdam & Eduard Ponds & Ed Westerhout, 2017. "Ageing-driven pension reforms," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 953-976, July.
    • Handle: RePEc:spr:jopoec:v:30:y:2017:i:3:d:10.1007_s00148-017-0637-0
    DOI: 10.1007/s00148-017-0637-0
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    Citations

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    Cited by:

    1. Westerhout, Ed, 2020. "The Adverse and Beneficial effects of Front-Loaded Pension Contributions," Discussion Paper 2020-016, Tilburg University, Center for Economic Research.
    2. Ishay Wolf & Smadar Levi, 2022. "Vague Pension Future: Empirical Evidence from the Israeli Radical Privatized Market," JRFM, MDPI, vol. 15(5), pages 1-15, April.
    3. Westerhout, Ed & Meijdam, Lex & Ponds, Eduard & Bonenkamp, Jan, 2022. "Should we revive PAYG? On the optimal pension system in view of current economic trends," European Economic Review, Elsevier, vol. 148(C).
    4. Westerhout, Ed, 2020. "Pension Reform in the Netherlands," Other publications TiSEM 083befc2-9d79-4181-9e10-2, Tilburg University, School of Economics and Management.
    5. Westerhout, Ed, 2018. "Paying for the Ageing Crisis : Who, How and When?," Discussion Paper 2018-001, Tilburg University, Center for Economic Research.
    6. Min Le & Xinrong Xiao & Dragan Pamučar & Qianling Liang, 2021. "A Study on Fiscal Risk of China’s Employees Basic Pension System under Longevity Risk," Sustainability, MDPI, vol. 13(10), pages 1-23, May.
    7. Westerhout, Ed & Ponds, Eduard & Zwaneveld, P.J., 2021. "Completing Dutch Pension Reform," Other publications TiSEM 4ee13c87-dd61-481b-bcb7-c, Tilburg University, School of Economics and Management.
    8. Evsey T. Gurvich & Maria A. Ivanova, 2018. "Economic Effect of Population Ageing and Pension Reforms," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 9-22, October.
    9. Westerhout, Ed, 2020. "Pension Reform in the Netherlands," Discussion Paper 2020-012, Tilburg University, Center for Economic Research.
    10. Evsey T. Gurvich, 2019. "Long-Term Global Trends in Pension Policy," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 9-26, December.
    11. Westerhout, Ed, 2018. "Paying for the Ageing Crisis : Who, How and When?," Other publications TiSEM 417903d2-6318-4744-891e-1, Tilburg University, School of Economics and Management.
    12. Gurvich, E., 2019. "Pension Policy and Population Ageing," Journal of the New Economic Association, New Economic Association, vol. 42(2), pages 177-186.
    13. Øystein Kravdal, 2021. "Sex Differences in Childlessness in Norway: Identification of Underlying Demographic Drivers," European Journal of Population, Springer;European Association for Population Studies, vol. 37(4), pages 1023-1041, November.
    14. Westerhout, Ed, 2020. "The Adverse and Beneficial effects of Front-Loaded Pension Contributions," Other publications TiSEM 25806b9b-8208-4ae6-b309-4, Tilburg University, School of Economics and Management.

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    More about this item

    Keywords

    Population ageing; Pension reform; PAYG pensions; Funded pensions; Welfare analysis;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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