Flexible Pension Take-up in Social Security

Yvonne Adema, Jan Bonenkamp and Lex Meijdam
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Jan Bonenkamp: CPB Netherlands Bureau for Economic Policy Analysis, The Hague, Netspar, The Netherlands

No 13-091/VI, Tinbergen Institute Discussion Papers from Tinbergen Institute

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.

Keywords: redistribution; retirement; flexible pensions (search for similar items in EconPapers)
JEL-codes: H23 H55 J26 (search for similar items in EconPapers)
Date: 2013-07-16
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Related works:
Journal Article: Flexible pension take-up in social security (2016)
Working Paper: Flexible pension take-up in social security (2016)
Working Paper: Flexible pension take-up in social security (2013)
Working Paper: Flexible Pension Take-up in Social Security (2013)
Working Paper: Flexible Pension Take-up in Social Security (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20130091

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