The Gains from Pension Reform

Assar Lindbeck and Mats Persson

Journal of Economic Literature, 2003, vol. 41, issue 1, 74-112

Abstract: We classify social security pension systems in three dimensions: actuarial versus non-actuarial, funded versus unfunded, and defined-benefit versus defined-contribution systems. Recent pension reforms are discussed in terms of these dimensions. Shifting to a more actuarial system reduces labor-market distortions, although limiting the scope for redistribution. Shifting to a funded system may increase saving, redistribute income to future generations and distort contemporary labor supply. A partial shift to a funded system helps individuals diversify their pension assets. A shift from a defined-benefit to a defined-contribution system means that income risk will be shifted from workers to pensioners.

Date: 2003
Note: DOI: 10.1257/002205103321544701
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Citations: View citations in EconPapers (235)

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Working Paper: The Gains from Pension Reform (2002)
Working Paper: The Gains from Pension Reform (2002)
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