Collectivised Post-Retirement Investment

John Armstrong and Cristin Buescu

Papers from arXiv.org

Abstract: We quantify the benefit of collectivised investment funds, in which the assets of members who die are shared among the survivors. For our model, with realistic parameter choices, an annuity or individual fund requires approximately 20\% more initial capital to provide as good an outcome as a collectivised investment fund. We demonstrate the importance of the new concept of pension adequacy in defining investor preferences and determining optimal fund management. We show how to manage heterogeneous funds of investors with diverse needs. Our framework can be applied to existing pension products, such as Collective Defined Contribution schemes.

Date: 2019-09, Revised 2020-04
New Economics Papers: this item is included in nep-age, nep-rmg and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/1909.12730 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:1909.12730

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators (help@arxiv.org).