Collective versus individual pension schemes: a welfare-theoretical perspective
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| Publication date | 24-10-2014 |
| Series | Netspar Discussion Paper, DP10/2014-045 |
| Number of pages | 37 |
| Publisher | Tilburg: Netspar |
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| Abstract | Collective pension contracts allow for intergenerational risk sharing with the unborn. They therefore imply a higher level of social welfare than individual accounts. Collective pension contracts also imply a sub-optimal allocation of consumption across time periods and states of nature however. Hence, collective pension contracts also reduce social welfare. This paper explores the welfare effects of a number of collective pension contracts, distinguishing between the two welfare effects. We find that collective schemes can be either superior or inferior to individual schemes. |
| Document type | Working paper |
| Language | English |
| Published at | http://arno.uvt.nl/show.cgi?fid=135242 |
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