This paper explores possible alternatives for the current Dutch first pillar pension scheme (AOW). It presents the welfare, labour market, saving and unintended bequest effects of a shift from a Beveridge towards a Bismarck system in which the pension rights depend on the labour market history....

Pension systems are under serious pressure worldwide. This pressure stems not only from the well-known trend of population aging, but also from those of increasing heterogeneity of the population and increasing labour mobility. The current economic crisis has aggravated these problems, thereby...

Intergenerational risk sharing by funded pension schemes may increase welfare in an ex ante sense. However, it also suffers from a time inconsistency problem. In particular, young generations may be unwilling to start participating in a pension scheme if this requires them to make huge transfers...