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Life Time Pension Benefits Relative to Life Time Contributions

Author

Listed:
  • Dennis Fredriksen

    (Statistics Norway, Oslo, Norway)

  • Nils M Stølen

    (Statistics Norway, Oslo, Norway)

Abstract

By extending a dynamic micro simulation model we compare total expected discounted contributions to the Norwegian National Insurance System with expected discounted sum of benefits from pensions received for cohorts born between 1910 and 2070. The results show that the cohorts, who established the pay-as-you-go system in 1967, experienced a substantial gain by letting future generations pay. As a result of the pension reform from 2011 future pension benefits will be tightened. With a positive net rate of interest cohorts born between 1950 and 1980 are those who are most hurt by the reform, while cohorts born after 2000 gain.

Suggested Citation

  • Dennis Fredriksen & Nils M Stølen, 2017. "Life Time Pension Benefits Relative to Life Time Contributions," International Journal of Microsimulation, International Microsimulation Association, vol. 10(2), pages 177-207.
    • Handle: RePEc:ijm:journl:v10:y:2017:i:2:p:177-207
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    File URL: http://www.microsimulation.org/IJM/V10_2/IJM_2017_10_2_6.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Marek Gora & Anna Ruzik-Sierdzinska, 2020. "Migration with pension reform expectations," Public Sector Economics, Institute of Public Finance, vol. 44(2), pages 203-219.

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    More about this item

    Keywords

    PENSION SYSTEMS; INTERGENERATIONAL DISTRIBUTION; DYNAMIC MICROSIMULATION;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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