Pension system design: roles and interdependencies of tax-financed and funded pensions (Q6632357)

In the first part of this paper, the authors give a qualitative overview of market failures, behavioural aspects, and distributional issues that form the background for a multi-pillar pension system design with mandatory components. In the second part of the paper, the authors present three thematic, quantitative analyses that illustrate fundamental relationship concerning wealth, inequality, insurance, and demographic changes. The paper also contains a detailed description of the agent-based model used for the analyses. The model is calibrated to Danish data, but the insights drawn are of general validity.