Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87391
Authors: 
Adema, Yvonne
Bonenkamp, Jan
Meijdam, Lex
Year of Publication: 
2013
Series/Report no.: 
Tinbergen Institute Discussion Paper 13-091/VI
Abstract: 
This paper studies the redistribution and welfare effects of increasing the flexibility of individual pension take-up. We use an overlapping-generations model with Beveridgean pay-as-you-go pensions, where individuals differ in ability and life span. We find that introducing flexible pension take-up can induce a Pareto improvement when the initial pension scheme contains within-cohort redistribution and induces early retirement. Such a Pareto-improving reform entails the application of uniform actuarial adjustment of pension entitlements based on average life expectancy. Introducing actuarial non-neutrality that stimulates later retirement further improves such a flexibility reform.
Subjects: 
redistribution
retirement
flexible pensions
JEL: 
H55
H23
J26
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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