Arbeitspapier
Pension prefunding, ageing, and demographic uncertainty
Pension prefunding can be used to smoothe contribution rates in economies where ageing will increase pension expenditure. But how extensive should prefunding be, in a defined benefit pension system, when there is considerable uncertainty concerning future mortality, fertility, and migration? We study the prefunding rules in the Finnish earnings-related pension system with an OLG simulation model. Increasing the degree of prefunding could yield a more even intergenerational outcome and make future generations’ position better, but it is quite possible to overshoot and harm current generations too much. Making the degree of prefunding fertility-dependent seems a useful alternative. With declining fertility, current large cohorts would pay modestly increased contributions. The accumulated funds, however, will be huge in relation to the wage bills of smaller future cohorts. – Pensions ; partial prefunding ; ageing ; demographic uncertainty
- Language
-
Englisch
- Bibliographic citation
-
Series: ETLA Discussion Papers ; No. 741
- Classification
-
Wirtschaft
- Subject
-
Rentenfinanzierung
Theorie
Finnland
Alternde Bevölkerung
- Event
-
Geistige Schöpfung
- (who)
-
Lassila, Jukka
Valkonen, Tarmo
- Event
-
Veröffentlichung
- (who)
-
The Research Institute of the Finnish Economy (ETLA)
- (where)
-
Helsinki
- (when)
-
2000
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lassila, Jukka
- Valkonen, Tarmo
- The Research Institute of the Finnish Economy (ETLA)
Time of origin
- 2000
Other Objects (12)
Ageing, demographic risks, and pension reform
Pension Reform and Demographic Uncertainty: The Case of Germany
Demographic uncertainty and taxes
Ageing Asia's Looming Pension Crisis
Bio-Demographic and Health Aspects of Ageing in the EU
Active ageing and pension system: Finland
Demographic Change Across The Globe Maintaining Social Security In Ageing Economies
Pension reform during the demographic transition
The Politics of Pension Reform under Ageing
Demographic Uncertainty and Generational Consumption Risk with Endogenous Human Capital
Demographic aspects of ageing and time use in a set of European countries
Government funds and demographic transition: alleviating ageing costs in a small open economy
Ageing, demographic risks, and pension reform
Pension Reform and Demographic Uncertainty: The Case of Germany
Demographic uncertainty and taxes
Ageing Asia's Looming Pension Crisis
Bio-Demographic and Health Aspects of Ageing in the EU
Active ageing and pension system: Finland
Demographic Change Across The Globe Maintaining Social Security In Ageing Economies
Pension reform during the demographic transition
The Politics of Pension Reform under Ageing
Demographic Uncertainty and Generational Consumption Risk with Endogenous Human Capital
Demographic aspects of ageing and time use in a set of European countries
Government funds and demographic transition: alleviating ageing costs in a small open economy
Ageing, demographic risks, and pension reform
Pension Reform and Demographic Uncertainty: The Case of Germany
Demographic uncertainty and taxes
Ageing Asia's Looming Pension Crisis
Bio-Demographic and Health Aspects of Ageing in the EU
Active ageing and pension system: Finland
Demographic Change Across The Globe Maintaining Social Security In Ageing Economies
Pension reform during the demographic transition
The Politics of Pension Reform under Ageing
Demographic Uncertainty and Generational Consumption Risk with Endogenous Human Capital
Demographic aspects of ageing and time use in a set of European countries