Social Insurance Based on Personal Savings

Stefan Fölster

The Economic Record, 1999, vol. 75, issue 1, 5-18

Abstract: Many countries have reformed, or plan to reform, their pension system. The trend is to move from an entitlement based system to a system in which contributions accumulate in some form of personal savings account. In recent years proposals have been made to apply a personal savings account also to other elements of social insurance, such as unemployment insurance, social assistance, health care costs and others. This paper presents a simple model and a simulation to compare the lifetime consequences of replacing a wide range of social insurance systems with savings account based social insurance. The results indicate that savings account based social insurance can be designed to provide the same economic security as offered by a generous welfare state, and yet lower marginal taxes considerably.

Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://doi.org/10.1111/j.1475-4932.1999.tb02429.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ecorec:v:75:y:1999:i:1:p:5-18

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0249

Access Statistics for this article

The Economic Record is currently edited by Paul Miller, Glenn Otto and Martin Richardson

More articles in The Economic Record from The Economic Society of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().