- Additional Authors
- Payet, Stéphanie.
- Found In
- OECD Journal: Financial Market Trends Vol. 2010, no. 2, p. 189-217 1995-2872
- Description
- 29 p.
- Summary
- This article examines the impact of labour, financial and demographic risks on retirement income from DC pension plans, with a special emphasis on labour-market risk. It uses a stochastic model that incorporates uncertainty about returns on investment, inflation, discount rates, life expectancy, employment prospects and real wages. The analysis herein highlights that labour-market risk, as well as uncertainty about returns on investment and inflation, have the largest impact on retirement income. The results suggest that default life-cycle investment strategies that reduce exposure to risky assets in the last decade before retirement are quite helpful in reducing the risk of sharp reductions in retirement income, in particular when a negative shock to equity markets occurs in the years before retiring. However, life-cycle strategies fail to address issues of retirement income adequacy or smooth out the volatility in retirement income from DC pension plans.
- Subject
- Finance and Investment
- LCCN
- 10.1787/fmt-2010-5kggc0z23fr5
- OCLC
- oecd-lib
- Author
Antolin, Pablo.
- Title
Assessing the Labour, Financial and Demographic Risks to Retirement Income from Defined-Contribution Pensions [electronic resource] / Pablo Antolin and Stéphanie Payet
- Imprint
Paris : OECD Publishing, 2011.
- Connect to:
- Indexed Term
Finance and Investment
- Added Author
Payet, Stéphanie.
- Found In:
OECD Journal: Financial Market Trends Vol. 2010, no. 2, p. 189-217 2010:2<189 1995-2872
- Other Standard Identifier
10.1787/fmt-2010-5kggc0z23fr5 doi