Titre
The survivor dividend as a tool to improve pension adequacy in nonfinancial defined contribution schemes
Type
article
Institution
UNIL/CHUV/Unisanté + institutions partenaires
Périodique
Auteur(s)
Arnold, Séverine
Auteure/Auteur
Boado-Penas, M. Carmen
Auteure/Auteur
Song, Zuochen
Auteure/Auteur
Liens vers les personnes
Liens vers les unités
ISSN
0346-1238
Statut éditorial
Publié
Date de publication
2024-11-25
Première page
1
Dernière page/numéro d’article
23
Peer-reviewed
Oui
Langue
anglais
Résumé
The mechanisms of non-financial defined contribution pension schemes (NDCs) are close to those of a fully funded defined contribution plan but under a pay-as-you-go framework. Of particular interest is how the accumulated capital of a deceased person is used, when the death occurs prior to retirement. At the moment, Sweden is the only NDC country that distributes this capital, called survivor dividend (SD). Without a distribution of the SD, the scheme would accumulate a reserve with no clear purpose. This paper aims to analyse to what extent the SD kept by most NDCs can be used to improve pension adequacy giving low-income pensioners the financial support they need. We develop theoretical models to achieve the financial equilibrium of the scheme depending on how the SD is distributed among all socio-economic groups and the use of different mortality tables (unisex versus group-specific). Our results indicate that the survivor dividend can be used to set up a minimum pension that benefit 66.54% of the pensioners increasing the average annual pension by 8.68%.
PID Serval
serval:BIB_60446E75F4E0
Open Access
Oui
Date de création
2025-03-12T12:47:15.030Z
Date de création dans IRIS
2025-05-20T20:27:47Z