Pension Finance in a Family: An Exposition

This paper links family ties with pension finance. This idea leans on altruistic motives within family as well as economic considerations. Market supply of pensions either in the formal state pension programmes or in private institutions has to a large extent replaced the need for long term association between family members. Family ties are partly weakened by state interventions and necessities oflong term commitments are therefore replaced by private and state pensions. These changes are helped by financial resources needed at old age that are demand driven in contrast to family commitments that are usually supply driven and normally voluntary. A model of individual accounts is suggested to partly internalise old age pension finance with family commitments

Keywords:

Pension finance , family , long-term care , pension economics