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Authors
Advisor(s)
Abstract(s)
This paper analyses the challenges posed by the low-yield environment and aging
population on pension funds asset management. A newly-created, fictional collective
defined contribution pension fund is presented, Bouwen & Pensioen, being the result of
the merger of 6 smaller defined benefit funds. Cash equivalent transfer values for each
member are calculated and it is found that the new pension fund faces a deficit funding
ratio. A forecasting model for the operations of Bouwen & Pensioen is derived. Tests are
conducted on relevant variables using the derived model. A proposal is made to the
newly-created pension fund regarding the solidarity reserve mechanism and the
investment strategy to follow. The proposals allow Bouwen & Pensioen to attain a 100%
funding ratio by the end of the forecasted period, keeping the flow of pension payments
equitable and fair across generations.
Description
Mestrado Bolonha em Finanças
Keywords
low-yields aging population pension funds solidarity reserve investment strategy
Pedagogical Context
Citation
Pereira, António Miguel de Jesus (2022). “The case of Netherlands’ Bouwen & Pensioen : rethinking pension investing”. Dissertação de Mestrado. Universidade de Lisboa. Instituto Superior de Economia e Gestão
Publisher
Instituto Superior de Economia e Gestão