The effect of age on portfolio choices: evidence form an Italian pension fund

Giuseppe Cappelletti, Giovanni Guazzarotti and Pietro Tommasino

No 768, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: Optimal Portfolio Theory prescribes that investors reduce their exposure to financial market risk as they get near to retirement. To assess the effect of ageing on portfolio choices, we study the case of an Italian defined contribution pension fund during the period 2002-08. We find that on average the willingness to hold risky assets does indeed significantly decrease with age, but we also document that inertial behaviour is quite widespread, and can be very costly.

Keywords: pension funds; portfolio choice (search for similar items in EconPapers)
JEL-codes: G21 G23 (search for similar items in EconPapers)
Date: 2010-07
New Economics Papers: this item is included in nep-age and nep-cfn
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.bancaditalia.it/pubblicazioni/temi-disc ... 0768/en_tema_768.pdf (application/pdf)

Related works:
Journal Article: The effect of age on portfolio choices: evidence from an Italian pension fund* (2014)
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:bdi:wptemi:td_768_10

Access Statistics for this paper

More papers in Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().