Universal Fully Funded Pensions versus Individualized Retirement Savings Accounts: A Comparison of Fully-Funded Pension Options

Stuart WILSON, Lok Sang HO

Research output: Working paperDiscussion paper series

Abstract

In light of the ongoing debate over pension reform and privatization, two fully-funded mandatory pension systems are examined: the Universal Fully Funded Pension (UFFP), and the Individual Savings Account (ISA) plans. The UFFP is a plan that retains the social aspect of public pensions, in which individuals pool longevity risk. The ISA system allows individuals to maintain ownership over their contributions, but does not pool longevity risk. Simulation exercises show that the UFFP system affords retirees much higher benefits and consumption levels over their lifetimes than what would be available under an ISA plan, when longevity is uncertain.
Original languageEnglish
Publication statusPublished - Dec 2005

Publication series

NameUniversity of Regina, Department of Economics : Discussion Paper
PublisherUniversity of Regina, Department of Economics
No.16
ISSN (Print)1709-7908

Fingerprint

Pensions
Savings
Retirement saving
Pension system
Longevity risk
Ownership
Pension reform
Simulation
Exercise
Privatization
Public pensions

Cite this

WILSON, S., & HO, L. S. (2005). Universal Fully Funded Pensions versus Individualized Retirement Savings Accounts: A Comparison of Fully-Funded Pension Options. (University of Regina, Department of Economics : Discussion Paper; No. 16).
WILSON, Stuart ; HO, Lok Sang. / Universal Fully Funded Pensions versus Individualized Retirement Savings Accounts: A Comparison of Fully-Funded Pension Options. 2005. (University of Regina, Department of Economics : Discussion Paper; 16).
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WILSON, S & HO, LS 2005 'Universal Fully Funded Pensions versus Individualized Retirement Savings Accounts: A Comparison of Fully-Funded Pension Options' University of Regina, Department of Economics : Discussion Paper, no. 16.

Universal Fully Funded Pensions versus Individualized Retirement Savings Accounts: A Comparison of Fully-Funded Pension Options. / WILSON, Stuart; HO, Lok Sang.

2005. (University of Regina, Department of Economics : Discussion Paper; No. 16).

Research output: Working paperDiscussion paper series

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WILSON S, HO LS. Universal Fully Funded Pensions versus Individualized Retirement Savings Accounts: A Comparison of Fully-Funded Pension Options. 2005 Dec. (University of Regina, Department of Economics : Discussion Paper; 16).