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441.More information
The Non-Discriminatory Actuarial Evaluation and the Redistributive Properties of the Pension Systems A fairly natural impartiality criterion for pensions is that of the equivalence between all the contributions paid and all the benefits received over the life cycle. How do the different national systems score as regards this norm? The Bismarck-based systems, also called "insurance" systems, should come closest. However, life expectancy deviations introduce anti-redistributive effects, thereby distancing them from this impartiality. The Beveridge-based systems partially offset these inequalities by paying out flat-rate benefits regardless of income and past contributions. However, they are imperfect when it comes to replacing lost income at retirement - except when this income is low - which imposes the use of supplementary private coverage.
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