This paper looks at how the Dutch General Old-Age Pensions Act impacts
the distribution of equivalent lifetime income, using a dynamic cross
-sectional microsimulation model. Considering both vertical and horizo
ntal redistributional effects, the paper shows that lifetime redistrib
ution is considerably smaller than the redistribution measured on the
basis of a period approach. The horizontal lifetime redistribution is
more important than the vertical one, but this effect is rather limite
d, in particular due to the increasing premium percentages in combinat
ion with the regressive nature of the contribution levying.