Longevity Risk and Taxation of Public Pensions

Arbeitspapier

We study transitions from EET tax regime to TEE regime in a defined-benefit pension scheme with a numerical overlapping generations model, using stochastic mortality projections as inputs. In a traditional pension scheme with no automatic longevity rules, such as a link between life expectancy and pensions or retirement age, the tax regime shift can be used to improve public finances, when longevity increases. Diminished private saving and weaker labour supply incentives are among the downsides. Especially the latter makes the reform welfare-reducing, if the improvement in state finances is not used to relieve taxation of labour.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 5640

Classification and Topics

• Classification: Wirtschaft ; Social Security and Public Pensions
• Subject: taxation ; pensions ; longevity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lassila, Jukka ; Valkonen, Tarmo
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/128344
• Last update: 10.03.2025, 11:44 AM CET