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.