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
Date Written: November 10, 2017
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: Suggested Citation