On the distinction between defined benefit pension plans and defined contribution pension plans: myths and facts
نویسندگان
چکیده
منابع مشابه
Getting Feedback on Defined Contribution Pension Plans
The financial market’s performance plays an important role in the retirement date of a DC pension plan holder. Consequentially, it could potentially also influence the labour force structure of countries that adopt DC features in their public and private pension systems. Numerous studies are motivated, however, by the theory that financial markets are affected by a country’s demographics, makin...
متن کاملDefined Contribution Pension Plans: Determinants of Participation and Contributions Rates
Records of 793,794 employees eligible to participate in 647 defined contribution pension plans are studied. About 71% of them choose to participate in the plans, and of the participants, 12% choose to contribute the maximum allowed, $10,500. The main findings are (other things equal) (1) participation rates, contributions and (most remarkably) savings rates increase with compensation; on averag...
متن کاملWhy Do Firms Offer Risky Defined Benefit Pension Plans?
Even risky pension sponsors could offer essentially riskless pension promises by contributing a sufficient level of resources to their pension trust funds and by investing those resources in fixed-income securities designed to deliver their payoffs just as pension obligations are coming due. However, almost no firm has chosen to fund its plan in this manner. We study the optimal funding choice ...
متن کاملDefault Funds in UK Defined Contribution Pension Plans
Most defined contribution (DC) pension plans give their members a degree of choice over the investment strategy for their contributions. Many plans also offer a ‘default’ fund for members unable or unwilling to choose their own investment strategy. We analyse the range of default funds offered by UK ‘stakeholder’ DC plans, which by law must offer a default fund. We find the default funds are ty...
متن کاملInvestment strategy design for defined contribution pension plans
As a consequence, individuals‟ retirement planning requirements have become significantly more complex. In an ideal world, members of DC schemes would have access to individual investment advice to allow them to construct a plan to help manage these risks. In practice it has not yet been possible to supply full, individually tailored advice to all DC members on an affordable basis. Instead what...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Boletim de Ciências Económicas
سال: 2014
ISSN: 0870-4260
DOI: 10.14195/0870-4260_57-3_7