A balancing approach: using the living standards framework to assess different retirement income policies

Author: Coleman, Andrew

Date: 2017-03

Publisher: University of Otago

Type: Working or discussion paper

Link to this item using this URL: http://hdl.handle.net/10523/7168

University of Otago

Abstract

This paper evaluates four retirement income policies that could be adopted in response to increasing longevity in terms of their marginal effects on economic performance, equity, risk, social infrastructure, and sustainability. Compared to three policies involving save-as-you-go funding (voluntary saving, government prefunding, or a supplementary mandatory saving scheme), a pay-as-you-go funded expansion New Zealand Superannuation is unattractive as it has the most disadvantages for all but current middle-aged people. The other schemes provide different tradeoffs between risk, economic growth, and equity. There are many good arguments to use structured saving schemes in addition to New Zealand Superannuation.

Subjects: Retirement income policy, intergenerational economics, Treasury Living Standards framework

Citation: ["Coleman, A. (2017). A balancing approach: using the living standards framework to assess different retirement income policies (Economics Discussion Papers Series No. 1703). University of Otago. Retrieved from http://hdl.handle.net/10523/7168"]

Copyright: Attribution-NonCommercial-ShareAlike 4.0 International