The ABCs of NDCs

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Date

2019-07-22

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Abstract

Nonfinancial defined contribution (NDC) pension schemes have been successfully implemented since the mid-1990s in a number of European countries (Sweden. Italy, Latvia, Poland, and Norway). The NDC approach features the lifelong contribution–benefit link of a financial defined contribution scheme, but is based on the pay-as-you-go format. An NDC approach implemented by the rulebook can manage the economic and demographic risks inherent to a pension scheme and by design creates financial sustainability. This paper offers a nontechnical introduction to NDC schemes, their basic elements and advantages over nonfinancial defined benefit schemes, the key technical frontiers of the approach, and the experiences of countries with NDC schemes.

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Analisi delle politiche, Pensioni, Riforma pensionistica

Citation

Holzmann R. (2019), The ABCs of NDCs, Roma, INAPP, WP, n. 19 <https://oa.inapp.org/xmlui/handle/20.500.12916/454>

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https://oa.inapp.gov.it/handle/20.500.12916/454

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Rapporti tecnici