Academic Repository ) Intergenerational risk sharing within funded pension schemes
نویسندگان
چکیده
We study risk sharing between generations for a variety of realistic collective funded pension schemes, where pension benefits and contributions may depend on the funding ratio and the asset returns. The collective pension schemes organizing intergenerational risk sharing are optimized with respect to the generosity of pension benefits, the asset allocation and the risk allocation rules. We perform a welfare comparison between the collective plans with intergenerational risk sharing and the optimal individual benchmark. We show that well-structured intergenerational risk sharing can be welfare-enhancing vis-a-vis the benchmark. Furthermore, from an ex ante perspective the expected welfare gain of the current entry cohort is not at the cost of the older and future cohorts.
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