Generational impacts of demographic changes in pay-as-you-go pension schemes

Measurement and application to the Netherlands

W.L. Heeringa, A.L. Bovenberg

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Rising longevity and falling fertility threaten the sustainability of pay-as-you-go pension schemes and have major implications for the distribution across generations. This paper shows that keeping generational accounts of the Dutch pay-as-you-go pension scheme constant since the introduction of this scheme in 1957 in the face of subsequent demographic changes would have required a gradual increase of the entitlement age. For the baby boom generations born between 1945 and 1960, we calculate a required increase in the entitlement age of between four and seven years to offset the generational impact of longer life expectancy and lower fertility.
Original languageEnglish
Pages (from-to)1-16
JournalDe Economist
Volume160
Issue number1
Publication statusPublished - 2012

Fingerprint

Pension scheme
Demographic change
Pay-as-you-go pension
Entitlement
Fertility
The Netherlands
Life expectancy
Sustainability
Baby boom

Cite this

@article{e0880f294f7d4f94911e5fcd5afbe9b9,
title = "Generational impacts of demographic changes in pay-as-you-go pension schemes: Measurement and application to the Netherlands",
abstract = "Rising longevity and falling fertility threaten the sustainability of pay-as-you-go pension schemes and have major implications for the distribution across generations. This paper shows that keeping generational accounts of the Dutch pay-as-you-go pension scheme constant since the introduction of this scheme in 1957 in the face of subsequent demographic changes would have required a gradual increase of the entitlement age. For the baby boom generations born between 1945 and 1960, we calculate a required increase in the entitlement age of between four and seven years to offset the generational impact of longer life expectancy and lower fertility.",
author = "W.L. Heeringa and A.L. Bovenberg",
year = "2012",
language = "English",
volume = "160",
pages = "1--16",
journal = "De Economist: Tijdschrift voor alle standen, tot bevordering van volkswelvaart, door verspreiding van eenvoudige beginselen van staatshuishoudkunde",
issn = "0013-063X",
publisher = "Springer",
number = "1",

}

Generational impacts of demographic changes in pay-as-you-go pension schemes : Measurement and application to the Netherlands. / Heeringa, W.L.; Bovenberg, A.L.

In: De Economist, Vol. 160, No. 1, 2012, p. 1-16.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Generational impacts of demographic changes in pay-as-you-go pension schemes

T2 - Measurement and application to the Netherlands

AU - Heeringa, W.L.

AU - Bovenberg, A.L.

PY - 2012

Y1 - 2012

N2 - Rising longevity and falling fertility threaten the sustainability of pay-as-you-go pension schemes and have major implications for the distribution across generations. This paper shows that keeping generational accounts of the Dutch pay-as-you-go pension scheme constant since the introduction of this scheme in 1957 in the face of subsequent demographic changes would have required a gradual increase of the entitlement age. For the baby boom generations born between 1945 and 1960, we calculate a required increase in the entitlement age of between four and seven years to offset the generational impact of longer life expectancy and lower fertility.

AB - Rising longevity and falling fertility threaten the sustainability of pay-as-you-go pension schemes and have major implications for the distribution across generations. This paper shows that keeping generational accounts of the Dutch pay-as-you-go pension scheme constant since the introduction of this scheme in 1957 in the face of subsequent demographic changes would have required a gradual increase of the entitlement age. For the baby boom generations born between 1945 and 1960, we calculate a required increase in the entitlement age of between four and seven years to offset the generational impact of longer life expectancy and lower fertility.

M3 - Article

VL - 160

SP - 1

EP - 16

JO - De Economist: Tijdschrift voor alle standen, tot bevordering van volkswelvaart, door verspreiding van eenvoudige beginselen van staatshuishoudkunde

JF - De Economist: Tijdschrift voor alle standen, tot bevordering van volkswelvaart, door verspreiding van eenvoudige beginselen van staatshuishoudkunde

SN - 0013-063X

IS - 1

ER -