Controlling the Effects of Demographic Risks: The Role of Pension Indexation Schemes

Juha M. Alho; Svend E. Hougaard Jensen; Jukka Lassila; Tarmo Valkonen

doi:10.1017/S1474747205001940

Controlling the Effects of Demographic Risks: The Role of Pension Indexation Schemes

Juha M. Alho, Svend E. Hougaard Jensen, Jukka Lassila, Tarmo Valkonen

Syddansk Universitet

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

Abstract

Within a model featuring demographic uncertainty, this paper studies a pension reform where public pension benefits are indexed to the total wage bill rather than to the average wage level. This implies a decline in the variability of contribution rates and an increase in the variability of replacement rates. While thus shifting some of the adjustment burden following demographic shocks to pensioners, the trade-off in risks is found to be fairly moderate.

Originalsprog	Engelsk
Tidsskrift	Journal of Pension Economics and Finance
Vol/bind	4
Udgave nummer	2
Sider (fra-til)	139 - 153
Antal sider	21
ISSN	1474-7472
DOI	https://doi.org/10.1017/S1474747205001940
Status	Udgivet - 2005

Emneord

Pensionsordninger
Demografi
Pensionspolitik
Pensionsreformer

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10.1017/S1474747205001940Licens: Ikke-specificeret

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Citationsformater

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abstract = "Within a model featuring demographic uncertainty, this paper studies a pension reform where public pension benefits are indexed to the total wage bill rather than to the average wage level. This implies a decline in the variability of contribution rates and an increase in the variability of replacement rates. While thus shifting some of the adjustment burden following demographic shocks to pensioners, the trade-off in risks is found to be fairly moderate.",

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KW - Demografi

KW - Pensionspolitik

KW - Pensionsreformer

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