Economic note: A payable alternative for the Dutch old-age pension system

It is generally assumed that a transition from an unfunded old-age pension scheme into a pension system based on a capital reserve system is not payable. It is shown for the Netherlands that it is possible to change over from a combined pay-as-you-go (the public pension) and capital-funded (the supp...

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Bibliographic Details
Published inJournal of policy modeling Vol. 21; no. 2; p. 275
Main Author Nelissen, Jan H M
Format Journal Article
LanguageEnglish
Published New York Elsevier Sequoia S.A 01.03.1999
Subjects
Economic theory
Pensions
Social policy
Studies
Netherlands
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Summary:It is generally assumed that a transition from an unfunded old-age pension scheme into a pension system based on a capital reserve system is not payable. It is shown for the Netherlands that it is possible to change over from a combined pay-as-you-go (the public pension) and capital-funded (the supplementary old-age pension) based system to a mainly capital-funded system, including a minimum provision. In the long run, the alternative proposals will be considerably cheaper than the current system. Older cohorts may sustain some losses due to the transition, but younger cohorts stand to gain.
ISSN:0161-8938
1873-8060