The advantages and disadvantages of different pension system designs

Ian Koetsier

doi:10.4337/9781785369551

The advantages and disadvantages of different pension system designs

Ian Koetsier^*

^*Corresponding author for this work

Economie van de publieke sector

Research output: Chapter in Book/Report/Conference proceeding › Chapter › Academic › peer-review

Abstract

This chapter provides an overview of the advantages and disadvantages of different pension system designs. The public unfunded pillar and private funded pillar are affected in different directions when some economic shocks occur, even though they do face some of the same risks. They are not equally exposed to demographic change or turmoil in the financial markets. Pensions have a very long time-horizon. This makes it impossible to predict which risks will materialize and which will not. Therefore, this chapter concludes that a multi-pillar system facilitates maximal risk sharing as adverse outcomes in one pillar could be balanced by another pillar.

Original language	English
Title of host publication	Public or Private Goods?: Redefining Res Publica
Editors	B. Unger, D. van der Linde, M. Getzner
Publisher	Edward Elgar Publishing
Pages	77-94
Number of pages	18
ISBN (Electronic)	9781785369551
ISBN (Print)	9781785369544
DOIs	https://doi.org/10.4337/9781785369551
Publication status	Published - 31 Mar 2017

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The advantages and disadvantages of different pension system designs

Abstract

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