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Pension payments and receipts by New Zealand birth cohorts, 1916--1986

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  • Andrew Coleman

Abstract

This paper analyses how demographic change has affected the costs and benefits that New Zealand's pay-as-you-go retirement income scheme has provided or will provide to cohorts born between 1916 and 1986. The analysis is based on historic data and Statistics New Zealand projections of future population trends. The results show that previous rapid population growth means cohorts born prior to 1980 can expect to pay half as much as they can expect to get in retirement benefits, but the costs of the scheme are getting larger and larger for subsequent cohorts.

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  • Andrew Coleman, 2016. "Pension payments and receipts by New Zealand birth cohorts, 1916--1986," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(1), pages 51-70, April.
    • Handle: RePEc:taf:nzecpp:v:50:y:2016:i:1:p:51-70
    DOI: 10.1080/00779954.2015.1095787
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    References listed on IDEAS

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    1. Michael Littlewood, 2010. "Pre-funding a government's future financial obligations - the New Zealand Superannuation case study," New Zealand Economic Papers, Taylor & Francis Journals, vol. 44(1), pages 91-111.
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    6. Andrew Coleman, 2014. "To Save or Save Not: Intergenerational Neutrality and the Expansion of New Zealand Superannuation," Treasury Working Paper Series 14/02, New Zealand Treasury.
    7. 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.
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