Generational accounting, solidarity and pension losses

Arbeitspapier

The creeping stock market collapse eroded the wealth of funded pension systems. This led to political tensions between generations due to the fuzzy definition of property rights on the pension funds wealth. We argue that this problem can best be resolved by the introduction of generational accounts. Using modern portfolio and consumption planning theory we show that the younger generations should have the higher equity exposure due to their human capital. Capital losses should be distributed smoothly over lifetime consumption. When stock markets are depressed equity should be bought, savings and consumption should be scaled down equiproportionally, and retirement should be postponed. Portfolio investment restrictions are quite costly.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 961

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions ; Social Security and Public Pensions ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
• Thema: saving and investment ; pension funds ; private pensions ; social security and public pensions ; financial institutions ; Pensionsfonds ; Private Rentenversicherung ; Börsenkrise ; Gesetzliche Rentenversicherung ; Intergenerative Belastungsrechnung ; Solidarität ; Generationenbeziehungen ; Portfolio-Management ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Teulings, Coen N. ; de Vries, Casper G.
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2003

Weitere Informationen

• Handle: http://hdl.handle.net/10419/20197
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ