Consumer Protection and the Design of the Default Option of a Pan-European Pension Product

76 Pages Posted: 17 Mar 2018 Last revised: 11 Apr 2019

See all articles by Andrea Berardi

Andrea Berardi

Ca Foscari University of Venice - Dipartimento di Economia

Claudio Tebaldi

Bocconi University - CAREFIN - Centre for Applied Research in Finance; Bocconi University - Department of Finance; Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research

Fabio Trojani

Swiss Finance Institute; University of Geneva

Date Written: February 1, 2018

Abstract

We address potential strengths and weaknesses of alternative protection schemes, which can be adopted as a ‘default option’ in a private, third pillar, pension product. In light of the observed behavior of savers adopting the ‘default option’ at international level, we perform a comparative analysis aimed at quantifying the costs and the benefits of two different risk mitigation techniques and market-standard investment products available to European consumers. We make the case for eligibility of life-cycle target-date funds as default option for the pan-European pension products.

Keywords: Life-Cycle Saving, Household Finance, Guaranteed Strategies

JEL Classification: G11, D14, D91

Suggested Citation

Berardi, Andrea and Tebaldi, Claudio and Trojani, Fabio, Consumer Protection and the Design of the Default Option of a Pan-European Pension Product (February 1, 2018). Swiss Finance Institute Research Paper No. 19-19. Available at SSRN: https://ssrn.com/abstract=3142243 or http://dx.doi.org/10.2139/ssrn.3142243

Andrea Berardi

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

Claudio Tebaldi (Contact Author)

Bocconi University - CAREFIN - Centre for Applied Research in Finance ( email )

Via Roentgen 1
Milan, 20136
Italy

Bocconi University - Department of Finance ( email )

Via Roentgen 1
Milano, MI 20136
Italy

Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research ( email )

Via Roentgen 1
Milan, 20136
Italy

Fabio Trojani

Swiss Finance Institute ( email )

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland

University of Geneva ( email )

Geneva, Geneva
Switzerland

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
78
Abstract Views
534
rank
330,967
PlumX Metrics