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Who Cares about the Day After Tomorrow? Pension Issues When Households are Myopic or Time Inconsistent

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Abstract

Pension economics has traditionally guided pension policy with the help of formal models based on individuals who think in a life cycle context with perfect foresight, full information, and in a time-consistent manner. This paper sheds light on selected aspects of pension economics when these assumptions do not hold. We focus on three aspects which are particularly relevant for the quickly aging Asian economies: the volume of savings for old-age provisions, international diversification of retirement savings, and global spillover effects of pension reforms.

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2017-04-01

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population aging; social security; life-cycle saving; public insurance; pension reform; retirement age

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Required Publisher Statement: © Asian Development Back. Available at ADB’s Open Access Repository under a Creative Commons Attribution license (CC BY 3.0 IGO).

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