Journal of Population Economics

, Volume 30, Issue 3, pp 953–976 | Cite as

Ageing-driven pension reforms

  • Jan Bonenkamp
  • Lex Meijdam
  • Eduard Ponds
  • Ed Westerhout
Original Paper

Abstract

This paper stems from the observation that there are two worldwide trends, pension reform and population ageing, and asks whether the two may be related. Exploring the cases of pension reform in different countries, we find that, although they are very different, the cases share a common characteristic: they shift risks away from workers towards those who are retired. Furthermore, population ageing, by increasing the weight of the elderly relative to working generations, raises the price of intergenerational risk sharing. Combining these findings, we argue and show formally that pension reform can be seen as a welfare-best response to population ageing.

Keywords

Population ageing Pension reform PAYG pensions Funded pensions Welfare analysis 

JEL Classification

H55 J18 H21 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2017

Authors and Affiliations

  • Jan Bonenkamp
    • 1
  • Lex Meijdam
    • 2
  • Eduard Ponds
    • 1
    • 2
  • Ed Westerhout
    • 2
    • 3
  1. 1.APG Asset ManagementAmsterdamThe Netherlands
  2. 2.Tilburg UniversityTilburgThe Netherlands
  3. 3.CPB Netherlands Bureau for Economic Policy AnalysisThe HagueThe Netherlands

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