Petter Lundborg
Professor
Expected and actual replacement rates in the pension system of the Netherlands: how and why do they differ?
Author
Summary, in English
This study examines the expected retirement replacement rates (RRs) of several cohorts of Dutch employees at the time of their planned retirements. It also computes RRs based on the available pension records. We find that the expected replacement rate (E(RR)) is, in general, higher than the ones we compute. Larger discrepancies are found for younger cohorts and for individuals with less education and working experience. We also examine the difference between the expected and computed RRs and find that the mismatch is mostly related to poor institutional knowledge. We also show the role of assumptions about institutions and wage profiles in determining our results.
Department/s
- Department of Economics
Publishing year
2013
Language
English
Pages
168-189
Publication/Series
Journal of Pension Economics and Finance
Volume
12
Issue
2
Links
Document type
Journal article
Publisher
Cambridge University Press
Topic
- Economics
Keywords
- Replacement rate
- expected retirement
- Oaxaca decomposition
Status
Published
ISBN/ISSN/Other
- ISSN: 1475-3022