The Efficiency of Pension Plan Investment Menus: Investment Choices in Defined Contribution Pension Plans
نویسندگان
چکیده
منابع مشابه
Investment 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...
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We analyse the financial risk in a defined contribution pension scheme, applying dynamic programming techniques to find an optimal investment strategy for the scheme member. We use a series of interim targets and a target at retirement linked to the desired net replacement ratio. We consider both the investment risk and the annuitisation risk faced by the individual and specifically consider th...
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Assuming the loss aversion framework of Tversky and Kahneman (1992), stochastic investment and labour income processes, and a path-dependent fund target, we show that the optimal investment strategy for defined contribution pension plan members is a target-driven ‘threshold’ strategy, whereby the equity allocation is increased if the accumulating fund is below target and is decreased if it is a...
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A defined contribution pension plan allows consumption to be redistributed from the plan member’s working life to retirement in a manner that is consistent with the member’s personal preferences. The plan’s optimal funding and investment strategies therefore depend on the desired pattern of consumption over the lifetime of the member. We investigate these strategies under the assumption that th...
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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...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1157360