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Petter Lundborg. Photo.

Petter Lundborg

Professor

Petter Lundborg. Photo.

Expected and actual replacement rates in the pension system of the Netherlands: how and why do they differ?

Author

  • Mark Van Duijn
  • Mauro Mastrogiacomo
  • Maarten Lindeboom
  • Petter Lundborg

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

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