A Reality-Check of a Future-Proof Pension Fund Model

Abstract

There is a lot of debate about the sustainability of the Dutch pension fund system. In this article we introduce a pension fund model that closely matches the common Dutch pension fund model. A simulation of the model shows that the Dutch pension fund system can be made future-proof with some minor changes. Moreover, the simulation shows that the model is reasonably robust against a Japan scenario.

Keywords: pension, contribution, benefit, Japan scenario

JEL Classification: E21, E44, G23, J10, H55