Which individuals make active investment decisions in the new Swedish pension system?

Stefan Engstrom and Anna Westerberg ()
Additional contact information
Anna Westerberg: National Social Insurance Board

No 527, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: This paper provides a detailed examination of individuals' active participation in a new public and mandatory defined contribution pension system. The new pension system was launched in the fall of 2000 and entitles Sweden's workforce of 4.4 million individuals to invest part of their individual pension account in mutual funds. Our findings show that the system is associated with a reversed investment behavior compared with studies of 401(k) plans; that is, individuals tend to make their own investment decisions. Contrary to U.S studies, we also find that women and younger individuals are more likely than men and older individuals to make an active investment decision.

Keywords: Mutual funds; portfolio choice; pension system; status quo bias (search for similar items in EconPapers)
JEL-codes: G11 G23 H55 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2003-05-07, Revised 2003-08-12
New Economics Papers: this item is included in nep-cfn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Published in Journal of Pension Economics and Finance, 2003, pages 225-245.

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hhs:hastef:0527

Access Statistics for this paper

More papers in SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Helena Lundin ().