We examine the possible consequences of the increasing shift from Defined Benefit to Defined Contribution arrangements for private pensions. Whilst much analysis has focused on the possible distribution of investment and job tenure risk, we point out the additional role for issues relating to adverse selection and to retirement incentives. These issues are illustrated using empirical evidence from the United Kingdom, where the fact that private pensions are an alternative, as opposed to a supplement, to earnings-related state pension provision makes the effects particularly salient.
Authors
![James Banks](/sites/default/files/styles/square_desktop/public/2022-06/James_Banks.jpg?itok=EvmV7fKj)
CPP Co-Director
James is Senior Research Fellow and Professor of Economics at Manchester, working on broad issues in the economics of retirement, savings and health.
![Carl Emmerson](/sites/default/files/styles/square_desktop/public/2022-06/Carl_Emmerson.jpg?itok=6jM06LTY)
Deputy Director
Carl, a Deputy Director, is an editor of the IFS Green Budget, is expert on the UK pension system and sits on the Social Security Advisory Committee.
![Richard Blundell](/sites/default/files/styles/square_desktop/public/2024-03/Richard%20Blundell%20Head.jpg?itok=ow7e9OkA)
CPP Co-Director
Richard is Co-Director of the Centre for the Microeconomic Analysis of Public Policy (CPP) and Senior Research Fellow at IFS.
Journal article details
- DOI
- 10.1162/jeea.2005.3.2-3.466
- Publisher
- Wiley
- JEL
- I38, J32, D91
- Issue
- Volume 3, Issue 2-3, April 2005
Suggested citation
J, Banks and R, Blundell and C, Emmerson. (2005). 'The Balance Between Defined Benefit, Defined Contribution, and State Provision' 3, Issue 2-3(2005)
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