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Life-Cycle Finance and the Design of Pension Plans

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  • Zvi Bodie
  • J�r�me Detemple
  • Marcel Rindisbacher

    ()
    (School of Management, Boston University, Boston, Massachusetts 02215)

Abstract

This article reviews recent scientific literature on consumer financial decisions over the life cycle, outlining its implications for the design of pension plans. It begins with a review of advances in the theory of rational financial planning and wealth management. It then summarizes the recent empirical literature on the actual behavior of households regarding saving, investing, and insuring their consumption in old age. Finally, it briefly comments on the practical implications of the theory for the design of pension systems and outlines areas of future research.

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Bibliographic Info

Article provided by Annual Reviews in its journal Annual Review of Financial Economics.

Volume (Year): 1 (2009)
Issue (Month): 1 (November)
Pages: 249-286

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Handle: RePEc:anr:refeco:v:1:y:2009:p:249-286

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Related research

Keywords: consumption; savings; labor; investments; retirement planning;

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References

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Cited by:
  1. Jayant Ganguli & Scott Condie & Philipp Karl Illeditsch, 2012. "Information Inertia," Economics Discussion Papers 719, University of Essex, Department of Economics.
  2. Richard Hinz & Heinz P. Rudolph & Pablo Antolin & Juan Yermo, 2010. "Evaluating the Financial Performance of Pension Funds," World Bank Publications, The World Bank, number 2405, October.
  3. Bodie, Zvi & Brière, Marie, 2013. "Sovereign Wealth and Risk Management. A New Framework for Optimal Asset Allocation of Sovereign Wealth," Economics Papers from University Paris Dauphine 123456789/7874, Paris Dauphine University.
  4. Shin S. Ikeda, 2013. "A Contingent Claim Analysis of Suicide," GRIPS Discussion Papers 13-05, National Graduate Institute for Policy Studies.

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