IDEAS home Printed from https://ideas.repec.org/a/vid/yearbk/v12y2014i1p169-192.html
   My bibliography  Save this article

More with less: the Almost Ideal Pension Systems (AIPS)

Author

Listed:
  • Gustavo DeSantis

Abstract

After exploring the rationale of pension systems, I outline the essential characteristics of ‘almost ideal pension systems’ (AIPSs), an improved version of the pay-as-you-go (PAYG) model. Depending on the policy choices, to be expressed in relative terms with parameters that range between zero and one, several—and possibly very different—forms of AIPSs can take shape: e.g. with high or low pension benefits, or with early or late retirement. (Almost) independent of the version chosen, AIPSs compare favourably in theory and in simulations to all other PAYG pension systems: for example, AIPSs are found to be superior in terms of their ability to ensure a balanced budget, intergenerational equity, resilience in the face of virtually all possible demographic and economic changes, and constancy at the preferred level for the relative economic well-being of the three basic age groups (young people, adults, and seniors). In addition, AIPSs are able to reduce, and even partly redress, the normally perverse redistributive effects that derive from heterogeneity in survival rates between subpopulation groups.

Suggested Citation

  • Gustavo DeSantis, 2014. "More with less: the Almost Ideal Pension Systems (AIPS)," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 12(1), pages 169-192.
    • Handle: RePEc:vid:yearbk:v:12:y:2014:i:1:p:169-192
    as

    Download full text from publisher

    File URL: https://austriaca.at/0xc1aa5576_0x00329fd3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert Holzmann & Joseph E. Stiglitz, 2001. "New Ideas about Old Age Security : Toward Sustainable Pension Systems in the 21st Century," World Bank Publications - Books, The World Bank Group, number 13857, December.
    2. Barr, Nicholas, 2002. "Reforming pensions: myths, truths, and policy choices," LSE Research Online Documents on Economics 286, London School of Economics and Political Science, LSE Library.
    3. Sánchez-Romero, Miguel & Sambt, Jože & Prskawetz, Alexia, 2013. "Quantifying the role of alternative pension reforms on the Austrian economy," Labour Economics, Elsevier, vol. 22(C), pages 94-114.
    4. Jonathan Gruber & David A. Wise, 1999. "Introduction to "Social Security and Retirement around the World"," NBER Chapters, in: Social Security and Retirement around the World, pages 1-35, National Bureau of Economic Research, Inc.
    5. Michel Guillot & Hyun Sik Kim, 2011. "On the correspondence between CAL and lagged cohort life expectancy," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 24(25), pages 611-632.
    6. repec:cai:poeine:pope_306_0587 is not listed on IDEAS
    7. Nicholas Barr, 2002. "Reforming pensions: Myths, truths, and policy choices," International Social Security Review, John Wiley & Sons, vol. 55(2), pages 3-36.
    8. Alessandro Cigno & Martin Werding, 2007. "Children and Pensions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262033690, December.
    9. Alyson van Raalte & Pekka Martikainen & Mikko Myrskylä, 2014. "Lifespan Variation by Occupational Class: Compression or Stagnation Over Time?," Demography, Springer;Population Association of America (PAA), vol. 51(1), pages 73-95, February.
    10. Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1, January.
    11. Michele Belloni & Rob Alessie & Adriaan Kalwij & Chiara Marinacci, 2013. "Lifetime income and old age mortality risk in Italy over two decades," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(45), pages 1261-1298.
    12. Warren C. Sanderson & Sergei Scherbov, 2013. "The Characteristics Approach to the Measurement of Population Aging," Population and Development Review, The Population Council, Inc., vol. 39(4), pages 673-685, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Graziella Caselli & Rosa Maria Lipsi, 2018. "Survival inequalities and redistribution in the Italian pension system," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 16(1), pages 083-110.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Geri, Milva, 2022. "Pension arrangements and economic thinking: unreal assumptions and false predictions in the case of Argentina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. Werding, Martin, 2016. "One pillar crumbling, the others too short: old-age provision in Germany," National Institute Economic Review, National Institute of Economic and Social Research, vol. 237, pages 13-21, August.
    3. Werding, Martin & Primorac, Marko, 2018. "Old-age provision in transition: the case of Croatia," Journal of Pension Economics and Finance, Cambridge University Press, vol. 17(4), pages 576-593, October.
    4. Paddison, Oliver, 2010. "La protection sociale dans les Caraïbes anglophones," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), June.
    5. Bernardo Lanza Queiroz, 2007. "The determinants of male retirement in urban Brazil," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 17(1), pages 11-36, January-A.
    6. Gruber, Jonathan & Kanninen, Ohto & Ravaska, Terhi, 2022. "Relabeling, retirement and regret," Journal of Public Economics, Elsevier, vol. 211(C).
    7. Lalive, Rafael & Parrotta, Pierpaolo, 2017. "How does pension eligibility affect labor supply in couples?," Labour Economics, Elsevier, vol. 46(C), pages 177-188.
    8. Gilles Le Garrec & Stéphane Lhuissier, 2011. "Life expectancy, heavy work and the return to education: lessons for the social security reform," SciencePo Working papers Main hal-01069511, HAL.
    9. Assar Lindbeck & Mats Persson, 2003. "The Gains from Pension Reform," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 74-112, March.
    10. Ga?ecka-Burdziak, Ewa & Góra, Marek, 2017. "How Do Unemployed Workers Behave Prior to Retirement? A Multi-State Multiple-Spell Approach," IZA Discussion Papers 10680, Institute of Labor Economics (IZA).
    11. Mona Larsen & Peder J. Pedersen, 2017. "Labour force activity after 65: what explain recent trends in Denmark, Germany and Sweden? [Arbeitsmarktbeteiligung von über 65-Jährigen: Ursachen für die jüngsten Entwicklungstrends in Dänemark, D," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 50(1), pages 15-27, August.
    12. Helmuth Cremer & Jean‐Marie Lozachmeur & Pierre Pestieau, 2008. "Social Security And Retirement Decision: A Positive And Normative Approach," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 213-233, April.
    13. Hugo Benítez-Silva & José Ignacio García-Pérez & Sergi Jiménez-Martín, 2014. "Reforming the U.S. Social Security system accounting for employment uncertainty," Economics Working Papers 1455, Department of Economics and Business, Universitat Pompeu Fabra.
    14. Cristiano Antonelli, 2017. "The Engines of the Creative Response: Reactivity and Knowledge Governance," Economía: teoría y práctica, Universidad Autónoma Metropolitana, México, vol. 47(2), pages 9-30, Julio-Dic.
    15. Axel Börsch-Supan & Tabea Bucher-Koenen & Felizia Hanemann, 2018. "Early Determinants of Work Disability in an International Perspective," NBER Working Papers 25142, National Bureau of Economic Research, Inc.
    16. Niels Vermeer & Maarten Rooij & Daniel Vuuren, 2019. "Retirement Age Preferences: The Role of Social Interactions and Anchoring at the Statutory Retirement Age," De Economist, Springer, vol. 167(4), pages 307-345, December.
    17. Laméris, Maite D. & Garretsen, Harry & Jong-A-Pin, Richard, 2020. "Political ideology and the intragenerational prospect of upward mobility," European Journal of Political Economy, Elsevier, vol. 62(C).
    18. Iñigo Iturbe-Ormaetxe & Guadalupe Valera, 2012. "Social security reform and the support for public education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(2), pages 609-634, January.
    19. Cremer Helmuth & Lozachmeur Jean-Marie & Pestieau Pierre, 2007. "Disability Testing and Retirement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-34, February.
    20. Pilar García-Gómez & Sergi Jiménez-Martín & Judit Vall Castelló, 2018. "Trends in Labor Force Participation of Older Workers in Spain," NBER Chapters, in: Social Security Programs and Retirement around the World: Working Longer, pages 205-230, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vid:yearbk:v:12:y:2014:i:1:p:169-192. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bernhard Rengs (email available below). General contact details of provider: https://www.oeaw.ac.at/vid/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.