Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2010-12-14 Number: 10-128/2 Author-Name: Roel Beetsma Author-Workplace-Name: University of Amsterdam Author-Name: Alessandro Bucciol Author-Workplace-Name: University of Verona, University of Amsterdam Title: Differentiating Indexation in Dutch Pension Funds Abstract: This discussion paper led to a publication in 'De Economist', 159(3), 323-360.
We investigate numerically how indexation of funded pensions for inflation can be differ-entiated across the various groups of fund participants. The pension arrangement is modelledafter the Dutch situation. While the aggregate welfare consequences are small, group-specific consequences are more substantial with the workers and future born losing and retirees bene-fitting from a shift away from uniform indexation. Those welfare shifts result from systematicredistribution of welfare rather than shifts in the benefit of risk sharing provided by the system. Classification-JEL: H55, I38, C61 Keywords: indexation, funded pensions, welfare effects, pension buffers, stochastic simulations File-Url: http://papers.tinbergen.nl/10128.pdf File-Format: application/pdf File-Size: 376420 bytes Handle: RePEc:tin:wpaper:20100128