Flexible pension take-up in social security

Jan Bonenkamp, Yvonne Adema and Lex Meijdam

No 254, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: This paper studies the redistribution and welfare effects of increasing the flexibility of individual pension take-up. We use an overlapping-generations model with Beveridgean pay-as-you-go pensions, where individuals differ in ability and life span. We find that introducing flexible pension take-up can induce a Pareto improvement when the initial pension scheme contains within-cohort redistribution and induces early retirement. Such a Pareto-improving reform entails the application of uniform actuarial adjustment of pension entitlements based on average life expectancy. Introducing actuarial non-neutrality that stimulates later retirement further improves such a flexibility reform.

JEL-codes: H23 H55 J26 (search for similar items in EconPapers)
Date: 2013-09
New Economics Papers: this item is included in nep-age, nep-dem and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Flexible pension take-up in social security (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cpb:discus:254

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