| Name: | Description: | Size: | Format: | |
|---|---|---|---|---|
| 2.52 MB | Adobe PDF |
Advisor(s)
Abstract(s)
Ageing of the populations is leading to reforms in Social Security systems with a negative impact
on post retirement income. One way to minimize this is to reinforce the role of complementary
pension schemes, and pension projections can be an important tool to assist workers in making
their decisions on saving for retirement. The topic has been discussed by the European Union (EU)
and the European Insurance and Occupational Pensions Authority (EIOPA).
This work focuses on a tool for making pension projections in the scope of occupational defined
contribution pension schemes, based on EIOPA’s guidance. We aim to study the potential
performance of different investment strategies using an Economic Scenario Generator framework
and evaluate the impact on the retirement income that such investment strategies produce, under
different assumptions. The model underlying the tool takes in three main risk factors: the financial
market risk, which includes uncertainty over returns on investments, inflation and interest rates;
the labor risk, originated from uncertainty over real wage growth paths; the demographic risk, as a
result of the increasing life expectancy.
Description
Keywords
Retirement income Pension projection Economic scenario generator Life tables Real-world valuation EIOPA
Pedagogical Context
Citation
Pinheiro, Frederico e Onofre Alves Simões (2023). "An ‘Eiopean’ tool to project post retirement income in portuguese defined contribution pension schemes". REM Working paper series, nº 0288/2023
Publisher
ISEG - REM - Research in Economics and Mathematics