Pension Plans and Retirement Replacements Rates in the Netherlands

24 Pages Posted: 17 Jun 2010

See all articles by Mark van Duijn

Mark van Duijn

University of Groningen, Faculty of Spatial Sciences, Department of Economic Geography and Population Research Centre

Maarten Lindeboom

Vrije Universiteit Amsterdam; Tinbergen Institute Amsterdam; IZA Institute of Labor Economics

Petter Lundborg

Tinbergen Institute; Lund University School of Economics and Management; IZA Institute of Labor Economics

Mauro Mastrogiacomo

De Nederlansdche Bank (DNB); Vrije Universiteit Amsterdam, School of Business and Economics

Date Written: January 1, 2009

Abstract

This study examines the expected retirement replacement rates of several cohorts of Dutch employees at the time of their planned retirements. It also imputes the actual replacement rates based on available pension records. We find that using reasonable indexation rates, the expected replacement rate is higher than the ones we compute. Larger discrepancies are found for younger cohorts. We research the difference between the two replacement rates and find that the mismatch is related to poor institutional knowledge. We also show the role of assumptions on institutions and wage profiles in determining our results.

Keywords: Replacement Rate, Expected Retirement, Oaxaca Decomposition

JEL Classification: J2, D84, D83

Suggested Citation

van Duijn, Mark and Lindeboom, Maarten and Lundborg, Petter and Lundborg, Petter and Mastrogiacomo, Mauro, Pension Plans and Retirement Replacements Rates in the Netherlands (January 1, 2009). Netspar Discussion Paper No. 01/2009-057, Available at SSRN: https://ssrn.com/abstract=1626188 or http://dx.doi.org/10.2139/ssrn.1626188

Mark Van Duijn

University of Groningen, Faculty of Spatial Sciences, Department of Economic Geography and Population Research Centre ( email )

P.O. Box 800
Groningen, 9700 AV
Netherlands

Maarten Lindeboom

Vrije Universiteit Amsterdam ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands
+31 20 444 6033 (Phone)
+31 20 444 6020 (Fax)

Tinbergen Institute Amsterdam

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Petter Lundborg

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Lund University School of Economics and Management ( email )

P.O Box 7080
Lund
Sweden

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Mauro Mastrogiacomo (Contact Author)

De Nederlansdche Bank (DNB) ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands
+31(0)20 444 6037 (Phone)
+31(0)20 444 6004 (Fax)