De voordelen van de solidariteitsreserve ontrafeld

The solidarity reserve is an element of the Dutch new pension system. This Topicality Paper explores how the solidarity reserve can be used to facilitate intergenerational risk sharing and how the withdrawal and deposit rules of the reserve should be designed. Based on an analysis of the academic literature and policy documents, we draw the following conclusions:
1. Policymakers attribute four goals to the solidarity reserve: i) sharing investment risks with future generations, ii) preventing unlucky and lucky generations, iii) sharing macro longevity risk with future generations and iv) sharing inflation risk with future generations.
2. The solidarity reserve makes it possible to share investment risks with future generations. Hence, the introduction of the solidarity reserve may potentially lead to an ex ante welfare gain.
3. Risk sharing with future generations does not prevent unlucky and lucky
generations.
4. ‘Ex post steering’ using the solidarity reserve does not create an ex ante welfare gain.
5. The solidarity reserve is, in principle, not needed to facilitate risk sharing of macro longevity risk and inflation risk.
6. We recommend policymakers to investigate the possibility of a so-called protection return for inflation risk. A protection return for macro longevity risk has already been proposed in the current consultation document.