Pay-as-you-go pension programs can help to share risk amongst generations.While a wage-indexed pension program is best suited to share labor income risk,I show that the combination of stochastic labor income and stochastic populationgrowth may reduce the possibilities for intergenerational risk...

This paper reviews changes in pension policies in EU countries between 1995 and2005 and describes how they might affect risk of poverty for future pensionerpopulations. The pension landscape in Europe has changed considerably in the pastdecade and the paper highlights commonalities as well as...

This article outlines the recommendations of the UK Pensions Commission, andthe data and analysis on which they were based, including projections ofdemographic change, trends in private pension saving, and evolution of the statepension system. The Commission concluded that without reform,...

This paper examines the decline of National Insurance in Britain, as witnessedby its declining share of all social security spending and the steady dilution ofthe “contributory principle” on which it was originally based. It argues that thisdecline is not an accident: under governments of...

A pay-as-you-go (paygo) pension program may provide intergenerational pooling of risks toindividuals´ labor and capital income over the life cycle. By means of a model that providesilluminating closed form solutions, we demonstrate that the magnitude of the optimal paygoprogram and the nature...