Measuring lifetime redistribution in Dutch occupational pensions
Herverdeling in het ouderdomspensioen
This paper quantifies lifetime redistribution in Dutch occupational pension schemes associated with uniform pricing. Information about the extent of redistribution is important because it will influence the public acceptance of the pension system.
The uniform contribution rate is split up into a saving share and a transfer share for different socioeconomic groups. The transfer share, in turn, consists of intergenerational and intragenerational transfers.
We find that the relative size of the saving- and transfer shares strongly depends on socioeconomic characteristics, such as gender and level of education. The saving part is higher for females than for males and it increases with the level of education, which implies that uniform pricing involves a large transfer from males to females and from low educated to higher educated workers. The impact of intergenerational transfers is modest.