An Ndc Approach to Helping Pensioners Cope with the Cost of Long-Term Care

Journal of Pensions Economic and Finance (Accepted for publication: 17 Jan 2018)

45 Pages Posted: 16 Jun 2016 Last revised: 18 Jan 2018

See all articles by Javier Pla-Porcel

Javier Pla-Porcel

SOS Seguros y Reaseguros, S.A.

Manuel Ventura-Marco

University of Valencia - Faculty of Economics

Carlos Vidal-Meliá

University of Valencia - Department of Financial Economics

Date Written: November 10, 2017

Abstract

This paper explores a notional defined contribution (NDC) approach aimed at helping pensioners to cope with the cost of long-term care (LTC). It develops the necessary technicalities to fully integrate an LTC benefit, graded according to the annuitant's degree of disability, into a generic NDC retirement framework with a minimum pension benefit for both contingencies. It also discusses the policy implications of various issues that should be taken into account before any decision is made to put the model into practice. Finally, to enable policymakers to better understand how the proposal would function, the paper includes a realistic numerical example.

Keywords: Life Care Annuities, Notional Defined Contribution, Pay-as-you-go, Long-Term Care Insurance, Social Security

JEL Classification: G22, H55, I13, J14, J26, M48

Suggested Citation

Pla-Porcel, Javier and Ventura-Marco, Manuel and Vidal-Meliá, Carlos, An Ndc Approach to Helping Pensioners Cope with the Cost of Long-Term Care (November 10, 2017). Journal of Pensions Economic and Finance (Accepted for publication: 17 Jan 2018) , Available at SSRN: https://ssrn.com/abstract=2796471 or http://dx.doi.org/10.2139/ssrn.2796471

Javier Pla-Porcel

SOS Seguros y Reaseguros, S.A. ( email )

Calle Ribera del Loira 4-6
Madrid, 28042
Spain

Manuel Ventura-Marco

University of Valencia - Faculty of Economics ( email )

Valencia, E-46022
Spain

Carlos Vidal-Meliá (Contact Author)

University of Valencia - Department of Financial Economics ( email )

Avda. del Tarongers, s/n
46022 Valencia
Spain

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
96
Abstract Views
625
rank
315,271
PlumX Metrics