A Life-Cycle Approach in the Dutch Occupational Pension System?

9 Pages Posted: 1 Jun 2010

See all articles by Dirk Broeders

Dirk Broeders

De Nederlandsche Bank; Maastricht University

David R. Rijsbergen

De Nederlandsche Bank

Date Written: Spring 2010

Abstract

The recent global financial crisis reconfirms the importance of risk management in defined benefit pension systems. To enhance sustainability, new forms of integrating the risk profiles of assets and liabilities should be considered. Specifically, by reducing the risk profile of assets, by transferring more risk to the beneficiaries, or through a combination of the two. This article provides a stochastic analysis of different strategies that gradually switch from risky to risk-free investments over the life-cycle. While the study is set in a Dutch institutional context, its findings have broad application.

Keywords: Benefit, Cost, Investment, Pension Fund, Performance Metric

Suggested Citation

Broeders, Dirk and Rijsbergen, David R., A Life-Cycle Approach in the Dutch Occupational Pension System? (Spring 2010). Rotman International Journal of Pension Management, Vol. 3, No. 1, 2010, Available at SSRN: https://ssrn.com/abstract=1618800 or http://dx.doi.org/10.2139/ssrn.1618800

Dirk Broeders (Contact Author)

De Nederlandsche Bank ( email )

P.O. Box 98
Amsterdam, 1000 AB
Netherlands

HOME PAGE: http://www.dnb.nl/en/research/personal-pages/dirk-broeders/

Maastricht University ( email )

P.O. Box 616
Maastricht, Limburg 6200MD
Netherlands

HOME PAGE: http://www.maastrichtuniversity.nl/about-um/faculties/school-business-and-economics

David R. Rijsbergen

De Nederlandsche Bank ( email )

Westeinde 1
Amsterdam, 1017 ZN
Netherlands

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