The Gains from Pension Reform
2002 (English)Report (Other academic)
We classify social security pension systems in three dimensions: actuarial versus non-actuarial, funded versus unfunded, and defined-benefit versus defined contribution systems. Recent pension reforms are discussed in terms of these dimensions. Shifting to a more actuarial system reduces labor-market distortions, although limiting the scope for redistribution. Shifting to a funded system may increase saving, redistribute income to future generations and distort contermporary labor supply. A partial shift to a funded system helps individuals diversify their pension assets. A shift from a defined-benefit to a defined-contribution system means that income risk will be shifted from workers to pensioners.
Place, publisher, year, edition, pages
Stockholm: IIES , 2002. , 75 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University. (Online), ISSN 1653-610X ; 712
social security, pension reform, actuarial fairness, funding
IdentifiersURN: urn:nbn:se:su:diva-42029OAI: oai:DiVA.org:su-42029DiVA: diva2:343730