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Modelling retirement income in New Zealand

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  • Christopher Ball

Abstract

A microsimulation model is presented to project the fiscal impacts of retirement income policy in New Zealand, while extending the range of policies that can be evaluated. Socio-economic variables, such as income and education, are projected along with demographic variables, such as labour force participation and mortality, to provide a more comprehensive analysis of the impacts of pension reform in New Zealand. Mortality differentials are constructed based on socio-economic and demographic variables, and are used to derive future fiscal costs. The fiscal impact of four types of pension reform is presented. The reforms include an increase in the age of eligibility, a change in the annual adjustment process, a move to communal prefunding and a move to compulsory private savings with abatement.

Suggested Citation

  • Christopher Ball, 2014. "Modelling retirement income in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 48(2), pages 209-225, August.
  • Handle: RePEc:taf:nzecpp:v:48:y:2014:i:2:p:209-225
    DOI: 10.1080/00779954.2013.874402
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    References listed on IDEAS

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    1. Andrew Coleman, 2012. "Pension Payments and Receipts by New Zealand Birth Cohorts, 1916–1986," Working Papers 12_11, Motu Economic and Public Policy Research.
    2. Soimakallio, Sampo & Saikku, Laura, 2012. "CO2 emissions attributed to annual average electricity consumption in OECD (the Organisation for Economic Co-operation and Development) countries," Energy, Elsevier, vol. 38(1), pages 13-20.
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