This paper summarizes recent developments in Dutch occupational pensions of both the DC and DB type. A reform of DB schemes is discussed that introduces financial assets as individual entitlements. At the same time, the reformed schemes derive (dis)saving, financial risk management and insurance decisions from the explicit objective of adequate and stable lifelong retirement income. In fact, the proposed system involves not only financial assets in individual accounts but also an insurance contract pooling longevity risks and possibly collective buffers that share systematic risks with future pension savers. The paper identifies the strengths and weaknesses of the Dutch contract design and draws lessons for other countries.
|Place of Publication||Tilburg|
|Number of pages||22|
|Publication status||Published - Sep 2017|
|Name||Netspar Academic Series|