publication . Article . Other literature type . 2017

Addressing Longevity’ Heterogeneity in Pension Scheme Design

Ayuso, Mercedes; Bravo, Jorge Miguel; Holzmann, Robert; Department of Econometrics, Statistics and Spanish Economy, University of Barcelona, Spain; Information Management School, Nova University of Lisbon, Portugal; Austrian Academy of Sciences, Vienna, Austria; and University of New South Wales, Sydney, Australia;
Open Access
  • Published: 01 Jan 2017 Journal: Journal of Finance and Economics, volume 6, pages 1-21 (issn: 2291-4951, eissn: 2291-496X, Copyright policy)
  • Publisher: Science and Education Centre of North America
Abstract
Ayuso, M., Bravo, J. M., & Holzmann, R. (2017). Addressing Longevity’ Heterogeneity in Pension Scheme Design. Journal of Finance and Economics, 6(1), 1-21. DOI: 10.12735/jfe.v6n1p1 This paper demonstrates that the link between heterogeneity in longevity and lifetime income across countries is mostly high and often increasing; that it translates into an implicit tax/subsidy, with rates reaching 20 percent and higher in some countries; that such rates risk perverting redistributive objectives of pension schemes and distorting individual lifecycle labor supply and savings decisions; and that this in turn risks invalidating current reform approaches of a closer cont...
Subjects
free text keywords: Defined Contribution Scheme, Two-Tier Contribution Structure, Proxied Life Expectancy, Tax/Subsidy Structure, Pensions a la vellesa, Longevitat, Risc (Economia), Old age pensions, Risk, Retirement age, Longevity, media_common.quotation_subject, media_common, Pension, Labour economics, Disbursement, Psychological intervention, Subsidy, Public economics, Economics
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