What Are the Gains from Pension Reform?

Arbeitspapier

This paper presents a unified analytical framework for the analysis of social security reform. It discusses reform along two dimensions: Pay-As-You-Go versus fully funded on the one hand, and actuarial versus non-actuarial on the other. Making the system more actuarial entails a trade-off between less distorted work incentives and intra-generational redistribution. Increasing the degree of funding entails a trade-off between more distorted work incentives, and redistribution in favor of future generations. If a PAYGO system already has strong actuarial elements, the additional welfare gain from making it fully funded derives from the possibility of portfolio diversification.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IUI Working Paper ; No. 535

Classification and Topics

• Classification: Wirtschaft ; Social Security and Public Pensions
• Subject: Pension reform ; social security ; funded pensions ; work incentives ; saving ; Rentenreform ; Umlageverfahren ; Rentenfinanzierung ; Kapitaldeckungsverfahren ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lindbeck, Assar ; Persson, Mats
• Event: Veröffentlichung
• (who): The Research Institute of Industrial Economics (IUI)
• (where): Stockholm
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/95045
• Last update: 10.03.2025, 11:42 AM CET