Intergenerational risk sharing by funded pension schemes may increase welfare in an ex ante sense. However, it also suffers from a time inconsistency problem. In particular, young generations may be unwilling to start participating in a pension scheme if this requires them to make huge transfers...

Pension systems are under serious pressure worldwide. This pressure stems not only from the well-known trend of population aging, but also from those of increasing heterogeneity of the population and increasing labour mobility. The current economic crisis has aggravated these problems, thereby...

In funded defined benefit pension schemes, contribution and accrual rates are typically age-independent. This implies that pension contributions are front-loaded. As contributions and accruals usually relate to earned labor income, this front-loading may affect labor market efficiency. For it...