Expected and actual replacement rates in the pension system of the Netherlands: how and why do they differ?

M. van Duijn, M. Lindeboom, N. Lundborg, M. Mastrogiacomo

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

This study examines the expected retirement replacement rates (RRs) of several cohorts of Dutch employees at the time of their planned retirements. It also computes RRs based on the available pension records. We find that the expected replacement rate (E(RR)) is, in general, higher than the ones we compute. Larger discrepancies are found for younger cohorts and for individuals with less education and working experience. We also examine the difference between the expected and computed RRs and find that the mismatch is mostly related to poor institutional knowledge. We also show the role of assumptions about institutions and wage profiles in determining our results. © 2013 Cambridge University Press.
Original languageEnglish
Pages (from-to)168-189
JournalJournal of Pension Economics and Finance
Volume12
Issue number2
DOIs
Publication statusPublished - 2013

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