IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-26496-3_5.html
   My bibliography  Save this book chapter

Pension Benefits in a More Realistic Setting

In: Essentials of Pension Economics

Author

Listed:
  • Sergio Nisticò

    (University of Cassino and Southern Lazio)

Abstract

Earnings-related pensions are computed according to the years of contributions, a certain number of last (or best), earnings and an accrual rate, i.e. the percentage of valorized earnings awarded as pension for each year of service. Indexation of existing pensions can be anchored either to wage or to CPI growth. Earnings-related pensions tend to award higher internal rate of returns (IRRs) to short and dynamic careers than to long and flat ones. Intra-generational unfairness is mitigated when applying lower accrual rates to higher income brackets, as in the U.S. system. Personal Accounts ensure fairness by computing the first annuity dividing the account balance at retirement by a ‘divisor’ reflecting retiring workers’ life expectancy, while anchoring indexation to the system’s rate of return ‘net’ of the frontloading factor.

Suggested Citation

  • Sergio Nisticò, 2019. "Pension Benefits in a More Realistic Setting," Springer Books, in: Essentials of Pension Economics, chapter 0, pages 65-95, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-26496-3_5
    DOI: 10.1007/978-3-030-26496-3_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-030-26496-3_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.