ALTERNATIVE RETIREMENT INCOME STRATEGIES - A COHORT ANALYSIS OF LIFETIME REDISTRIBUTION

This paper compares the lifetime redistribution and progressivity, wit hin a cohort of males, of two retirement income systems. The current g overnment strategy in Australia is to increase the role of occupationa l superannuation and maintain a means-tested age pension. The Institut e of Actuaries of Australia has recommended a universal pension with a corresponding smaller role for occupational superannuation. In terms of lifetime inequality and progressivity measures, it is found that th ere is not a substantial difference between the two systems. Other iss ues, such as the benefit choice at retirement and differential mortali ty, are found to be more important in determining the lifetime redistr ibutive impact of a retirement income strategy.