A balancing approach: using the living standards framework to assess different retirement income policies
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.
Publisher: University of Otago
Series number: 1703
Keywords: Retirement income policy; intergenerational economics; Treasury Living Standards framework
Research Type: Discussion Paper
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