This paper examines the optimal design of pension plans when the health status during retirement is uncertain. Assuming that the health status affects both life expectancy and the marginal utility of consumption, choice between a lump-sum payment and an annuity can be welfare-enhancing if the...

We analyze the effects of a permanent increase in life expectancy and of a permanent decline in the rate of population growth on intergenerational redistribution in a pay-as-you-go pension system with a constant contribution or constant replacement rate. We show that under these policies both...

Die Lebenserwartung der Bevölkerung in den Industrienationen steigt immer weiter an. Die Rentensysteme werden dadurch immer stärker belastet. In diesem Bericht werden Vorschläge zur Veränderung der Rentensysteme gemacht und über eine Änderung des Renteneintrittsalter diskutiert. Es wird...

This paper examines the optimal design of pension plans when the health status during retirement is uncertain. Assuming that the health status affects both life expectancy and the marginal utility of consumption, choice between a lump-sum payment and an annuity can be welfare-enhancing if the...