New Dutch pension contracts and lessons for other countries

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This paper summarizes recent developments in Dutch occupational pensions of both the defined contribution and defined benefit (DB) types. 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. The proposed system also involves 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.
Original languageEnglish
Pages (from-to)331-346
JournalJournal of Pension Economics and Finance
Volume18
Issue number3
DOIs
Publication statusPublished - Jul 2019

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Pensions
Defined benefit
Contract design
Financial risk management
Longevity risk
Defined contribution
Systematic risk
Insurance
Entitlement
Retirement income
Insurance contract
Occupational pension
Pooling
Financial assets
Buffer

Keywords

  • defined benefit
  • defined contribution
  • variable annuity
  • personal pension

Cite this

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New Dutch pension contracts and lessons for other countries. / Bovenberg, Lans; Nijman, Theo.

In: Journal of Pension Economics and Finance, Vol. 18, No. 3, 07.2019, p. 331-346.

Research output: Contribution to journalArticleScientificpeer-review

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AB - This paper summarizes recent developments in Dutch occupational pensions of both the defined contribution and defined benefit (DB) types. 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. The proposed system also involves 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.

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