The ABCs of NDCs

Robert Holzmann

No 136555, Social Protection Discussion Papers and Notes from The World Bank

Abstract: Nonfinancial defined contribution (NDC) pension schemes have been successfully implemented since the mid-1990s in a number of European countries. The NDC approach features the lifelong contribution?benefit link of a financial defined contribution scheme, but is based on the pay-as-you-go format. An NDC approach implemented by the rulebook can manage the economic and demographic risks inherent to a pension scheme and by design creates financial sustainability. This paper offers a nontechnical introduction to NDC schemes, their basic elements and advantages over nonfinancial defined benefit schemes, the key technical frontiers of the approach, and the experiences of countries with NDC schemes.

Keywords: Pensions&Retirement Systems; Population&Development; Rural Labor Markets; Labor Markets; Public Sector Economics; Public Finance Decentralization and Poverty Reduction; Macro-Fiscal Policy; Taxation&Subsidies; Economic Adjustment and Lending (search for similar items in EconPapers)
Date: 2019-04-01
New Economics Papers: this item is included in nep-age
References: Add references at CitEc
Citations:

Downloads: (external link)
http://documents.worldbank.org/curated/en/34974155 ... The-ABCs-of-NDCs.pdf (application/pdf)

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:wbk:hdnspu:136555

Access Statistics for this paper

More papers in Social Protection Discussion Papers and Notes from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Aaron F Buchsbaum ().