Consumer Protection and the Design of the Default Option of a Pan-European Pension Product

Andrea Berardi, Claudio Tebaldi and Fabio Trojani
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Andrea Berardi: Ca Foscari University of Venice - Dipartimento di Economia
Claudio Tebaldi: Bocconi University - CAREFIN - Centre for Applied Research in Finance; Bocconi University - Department of Finance; Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research
Fabio Trojani: Swiss Finance Institute; University of Geneva

No 19-19, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: We address potential strengths and weaknesses of alternative protection schemes, which can be adopted as a ‘default option’ in a private, third pillar, pension product. In light of the observed behavior of savers adopting the ‘default option’ at international level, we perform a comparative analysis aimed at quantifying the costs and the benefits of two different risk mitigation techniques and market-standard investment products available to European consumers. We make the case for eligibility of life-cycle target-date funds as default option for the pan-European pension products.

Keywords: Life-Cycle Saving; Household Finance; Guaranteed Strategies (search for similar items in EconPapers)
JEL-codes: D14 D91 G11 (search for similar items in EconPapers)
Pages: 76 pages
Date: 2019-03, Revised 2019-04
New Economics Papers: this item is included in nep-age, nep-eur and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp1919

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