Publication: NDC: The Generic Old-Age Pension Scheme
Date
2019-04
ISSN
Published
2019-04
Author(s)
Abstract
This paper defines a universal public
pension scheme (UPPS) as a government mandated lifecycle
longevity insurance scheme that transfers individual
consumption from the working years to retirement. It
discusses the differences in four UPPS designs designated as
either defined contribution (DC) or defined benefit (DB),
and financial or nonfinancial. With individual DC accounts,
the ball is in the individual’s court. The transparent link
between contributions and retirement income is the enabler
of efficiency that through marginal decisions to choose
formal work over informal work or leisure and to postpone
retirement marginally toward the end of the working life,
supports affordability and sustainability for a chosen level
of adequacy. Hence, UPPS-DC designs are found superior to
UPPS-DB designs.
Citation
“Góra, Marek; Palmer, Edward. 2019. NDC; NDC : The Generic Old-Age Pension Scheme. Social Protection and Jobs Discussion Paper,no. 1907;. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/31631 License: CC BY 3.0 IGO.”