Financing and Policy Strategies for Pensions in Indonesia

2. 4. DBDC/ NDC discussions (contd.) Notional defined contributions (NDC) scheme => 'Notional' individual saving, similar to DC, but not all amount in the account; Require high contribution rate (e.g. 20%) for substantial amount to be accumulated, from the beginning of the scheme, at the time of developing stage of economy Scare investment opportunities at the time of developing stage of economy Cannot cater for disability or survivors' pensions Adopted by countries with already high contribution rates, e.g. Sweden, Poland, Italy 8

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