IMF Working Papers

Self-Employment and Support for the Dutch Pension Reform

By Izabela Karpowicz

March 19, 2019

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Format: Chicago

Izabela Karpowicz. Self-Employment and Support for the Dutch Pension Reform, (USA: International Monetary Fund, 2019) accessed September 18, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The Netherlands’ pension system is characterized by high participation rates, adequate retirement income, strong capitalization and sustainability. Pressure points are arising, however, due to population aging and untransparent intergenerational transfers inherent in the system. Moreover, the Dutch pension system needs to adapt to the changing labor market landscape with an increasing share of workers in self-employment not covered by any pension arrangement. The government has proposed replacing collective defined-benefits schemes with personal accounts, and abolishing uniform premia and constant accrual rates. The micro-data analysis shows that allowing greater risk-taking and freedom of choice in managing pension savings could crowd self-employed into pension schemes.

Subject: Expenditure, Income, Labor, National accounts, Pension reform, Pension spending, Pensions, Self-employment

Keywords: Europe, Global, Gross income, Income, Income stream, Investment risk, Occupational pension, Pension, Pension contract, Pension reform, Pension spending, Pensions, Pillar pension schemes, Result, Risk, Risk attitude, Risk sharing, Self-employment, Self-employment status, WP

Publication Details

  • Pages:

    26

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

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  • Series:

    Working Paper No. 2019/064

  • Stock No:

    WPIEA2019064

  • ISBN:

    9781498302807

  • ISSN:

    1018-5941