Demographic change and the rate of return in PAYG pension systems

Beschreibung

The currently observed demographic change consists of two independent developments that differ in structure and persistence: (1) A slow, monotonic and (presum-ably) permanent ageing effect caused by an increasing life expectancy; (2) a more rapidly changing, non-monotonic and less permanent cohort effect caused by fluctuations in the size of cohorts. This paper shows the ageing effect has a positive impact on the rates of return households generate within pay-as-you-go (PAYG) pension system. The cohort effect, by contrast, results in winners and losers in PAYG systems. Taking Germany as an example and using a quantitative OLG model the paper shows that the two effects cause rate of return differentials within the pension system of almost 1.3 percentage points between generations.
steht auch als elektronisches Dokument zur Verfügung (ISBN 978-3-95729-785-3)

Autor*in

Matthias Schön

Themen in »Demographic change and the rate of return in PAYG pension systems«

Rendite Rentensystem Umlageverfahren

Stimmen zu »Demographic change and the rate of return in PAYG pension systems«

Details

Link teilen