Demography, Economy and Policy Choices
The Three Corners of the Pension Conundrum
Bibliographic Data
| ID | 6170281 |
|---|---|
| Authors | Gustavo De Santis (0000-0003-2058-2629, University of Florence, corresponding author) |
| Year | 2024 |
| Volume | 15 |
| Issue | 2 |
| Pages | 169-200 |
| Publication date | 2024-05-14 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Statistics Politics and Policy (JOURNAL) |
| Journal identifiers | ISSN: 2151-7509 • E-ISSN: 2194-6299 |
| Publisher | De Gruyter (PUBLISHER • DE) |
| DOI | 10.1515/spp-2023-0013 |
| OpenAlex | W4396887367 |
| Language | EN |
| Citations received | 1 |
| References cited | 35 |
NDC (notional defined contribution) pension systems are usually considered the best in the PAYGO (pay-as-you-go) category: they mimic funding, seem to be well balanced, and have very limited distortionary effects on the labour market. In this paper, after highlighting of few of their weaknesses, I suggest an alternative solution to the pension problem: IPAYGO, or improved PAYGO. Its guiding principle, “everything is relative”, is applied consistently to both the economic and the demographic part of the problem: this makes the system viable in all possible demographic and economic scenarios. Depending on a few explicit policy (parametric) choices, IPAYGO may take very different shapes, and adapt to national preferences, such as early or late retirement, generous or limited pension benefits, and greater or lesser emphasis on actuarial equity. A properly designed IPAYGO, even in its basic form (the only one discussed here), can tackle issues such as inequities deriving from differential mortality (with the richer living longer), pension-induced low fertility, and quasi-capital gains and losses. While IPAYGO is conceived to be an operative instrument, it can also be used to evaluate existing pensions systems, and the phase a population is going through, with a novel measure of the so-called “demographic bonus” (or “malus
Actuarial science · Capital (architecture · Economic growth · Economics · Equity (law · Fertility · Human capital · Intergenerational equity · Labour economics · National Pension · Notional amount · Overlapping generations model · Pension · Political science · Population · Population ageing · Public economics · Sociology · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues · Insurance, Mortality, Demography, Risk Management · Finance
The Political Economy of Pension Reform in Europe
Pension Reforms and the Opinions of European Citizens
The Great Demographic Reversal
Gender Equality in Pensions
The political economy of pension reforms in Europe under financial stress
Mixing Bismarck and child pension systems
Ageing-driven pension reforms
Pensions and fertility
Is There a Child Penalty in Pensions? The Role of Caregiver Credits in the French Retirement System
Does information increase political support for pension reform
Age Structure, Intergenerational Transfers and Economic Growth
Reforming Pensions
The ABCs of nonfinancial defined contribution (NDC) schemes
Long-term impact of mortality on population age structures
Generational Accounting
| Citation velocity | historical |
|---|---|
| Highly cited | No |