Discussion Paper 421 'Optimizing the life cycle path of pension premium payments and the pension ambition in the Netherlands'

Discussion Paper 421 'Optimizing the life cycle path of pension premium payments and the pension ambition in the Netherlands' Optimizing the life cycle path of pension premium payments and the pension ambition in the Netherlands We investigate the optimal Both the upward sloping income arrangement of a fully funded profile and the presence of pension system in a life cycle children in young househ. [...] the early years of the household and the education level of the main earner of the household. [...] For calculations that impute the baseline assumptions we also present the results of the model where the utility concept only takes account of the standardized consumption that accrues to the income earners in the household, as the literature is not conclusive yet. [...] In the subsequent subsections we carry out an analysis that explores the impact of changes in family size on the outcomes (section 4.3) and explore the sensitivity of the results to three parameter values: time preference β, the inverse of the elasticity of substitution σ and the return on wealth (section 4.4). [...] To this end, we determine the flat pension premium rate and the corresponding pension ambition that maximizes the lifetime welfare of the household in both the earner and the family model.