Which individuals make active investment decisions in the new Swedish pension system?
AbstractThis paper provides a detailed examination of individuals' active participation in a new public and mandatory defined contribution pension system. The new pension system was launched in the fall of 2000 and entitles Sweden's workforce of 4.4 million individuals to invest part of their individual pension account in mutual funds. Our findings show that the system is associated with a reversed investment behavior compared with studies of 401(k) plans; that is, individuals tend to make their own investment decisions. Contrary to U.S studies, we also find that women and younger individuals are more likely than men and older individuals to make an active investment decision.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 527.
Length: 29 pages
Date of creation: 07 May 2003
Date of revision: 21 Jul 2003
Publication status: Published in Journal of Pension Economics and Finance, 2003, pages 225-245.
Contact details of provider:
Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-(0)8-736 90 00
Fax: +46-(0)8-31 01 57
Web page: http://www.hhs.se/
More information through EDIRC
Mutual funds; portfolio choice; pension system; status quo bias;
Find related papers by JEL classification:
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Samuelson, William & Zeckhauser, Richard, 1988. " Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, Springer, vol. 1(1), pages 7-59, March.
- Patrick J. Bayer & B. Douglas Bernheim & John Karl Scholz, 1996.
"The Effects of Financial Education in the Workplace: Evidence from a Survey of Employers,"
NBER Working Papers
5655, National Bureau of Economic Research, Inc.
- Patrick J. Bayer & B. Douglas Bernheim & John Karl Scholz, 2009. "The Effects Of Financial Education In The Workplace: Evidence From A Survey Of Employers," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 47(4), pages 605-624, October.
- Patrick J. Bayer & B. Douglas Bernheim & John Karl Scholz, 1996. "The Effects of Financial Education in the Workplace: Evidence from a Survey of Employers," Working Papers, Stanford University, Department of Economics 96011, Stanford University, Department of Economics.
- William F. Bassett & Michael J. Fleming & Anthony P. Rodrigues, 1998.
"How workers use 401(k) plans: the participation, contribution, and withdrawal decisions,"
Staff Reports, Federal Reserve Bank of New York
38, Federal Reserve Bank of New York.
- Bassett, William F. & Fleming, Michael J. & Rodrigues, Anthony P., 1998. "How Workers Use 401(k) Plans: The Participation, Contribution, and Withdrawal Decisions," National Tax Journal, National Tax Association, vol. 51(n. 2), pages 263-89, June.
- James J. Choi & David Laibson & Brigitte C. Madrian & Andrew Metrick, 2001.
"Defined Contribution Pensions: Plan Rules, Participant Decisions, and the Path of Least Resistance,"
NBER Working Papers
8655, National Bureau of Economic Research, Inc.
- James J. Choi & David Laibson & Brigitte C. Madrian & Andrew Metrick, 2002. "Defined Contribution Pensions: Plan Rules, Participant Decisions, and the Path of Least Resistance," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 257, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Sunden, Annika E & Surette, Brian J, 1998. "Gender Differences in the Allocation of Assets in Retirement Savings Plans," American Economic Review, American Economic Association, American Economic Association, vol. 88(2), pages 207-11, May.
- Brad M. Barber & Terrance Odean, 2001. "Boys Will Be Boys: Gender, Overconfidence, And Common Stock Investment," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(1), pages 261-292, February.
- Merton, Robert C, 1987.
" A Simple Model of Capital Market Equilibrium with Incomplete Information,"
Journal of Finance, American Finance Association,
American Finance Association, vol. 42(3), pages 483-510, July.
- Merton, Robert C., 1987. "A simple model of capital market equilibrium with incomplete information," Working papers, Massachusetts Institute of Technology (MIT), Sloan School of Management 1869-87., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Mark Grinblatt, 2001. "How Distance, Language, and Culture Influence Stockholdings and Trades," Journal of Finance, American Finance Association, American Finance Association, vol. 56(3), pages 1053-1073, 06.
- Huberman, Gur, 2001. "Familiarity Breeds Investment," Review of Financial Studies, Society for Financial Studies, Society for Financial Studies, vol. 14(3), pages 659-80.
- Karlsson, Anders & Norden, Lars, 2007. "Home sweet home: Home bias and international diversification among individual investors," Journal of Banking & Finance, Elsevier, Elsevier, vol. 31(2), pages 317-333, February.
- Dimitrios Christelis & Tullio Jappelli & Mario Padula, 2006.
"Cognitive Abilities and Portfolio Choice,"
CSEF Working Papers, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy
157, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Dimitris Christelis & Tullio Jappelli & Mario Padula, 2008. "Cognitive Abilities and Portfolio Choice," Working Papers 2008_19, Department of Economics, University of Venice "Ca' Foscari".
- Christelis, Dimitris & Jappelli, Tullio & Padula, Mario, 2006. "Cognitive Abilities and Portfolio Choice," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5735, C.E.P.R. Discussion Papers.
- Christelis, Dimitris & Jappelli, Tullio & Padula, Mario, 2008. "Cognitive abilities and portfolio choice," CFS Working Paper Series 2008/35, Center for Financial Studies (CFS).
- Kayam, Saime S. & Parkın, Mehmet Koray & Çeliktopuz, Merih, 2013. "Features that influence the exit decision from the private pension system in Turkey," MPRA Paper 50933, University Library of Munich, Germany.
- Engström, Stefan & Westerberg, Anna, 2004. "Information Costs and Mutual Fund Flows," Working Paper Series in Economics and Finance, Stockholm School of Economics 555, Stockholm School of Economics.
- McQueen, Grant & Stenkrona, Anders, 2012. "The home-institution bias," Journal of Banking & Finance, Elsevier, Elsevier, vol. 36(6), pages 1627-1638.
- Tubetov, Dulat & Maart, Syster Christin & Musshoff, Oliver, 2012. "The comparison of investment behaviors of Kazakhstani and German farmers: An experimental approach," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK, Agricultural Economics Society 134770, Agricultural Economics Society.
- Craig Speelman & Marilyn Clark-Murphy & Paul Gerrans, 2013. "Decision Making Clusters in Retirement Savings: Gender Differences Dominate," Journal of Family and Economic Issues, Springer, Springer, vol. 34(3), pages 329-339, September.
- Tubetov, Dulat & Maart, Syster Christin & Musshoff, Oliver, 2012. "Experimental examination of land investment decisions with volatile returns A comparison between Kazakhstani and German farmers," 123rd Seminar, February 23-24, 2012, Dublin, Ireland, European Association of Agricultural Economists 122454, European Association of Agricultural Economists.
- Hedesstrom, Ted Martin & Svedsater, Henrik & Garling, Tommy, 2007. "Determinants of the use of heuristic choice rules in the Swedish Premium Pension Scheme: An Internet-based survey," Journal of Economic Psychology, Elsevier, Elsevier, vol. 28(1), pages 113-126, January.
- Hagen, Johannes, 2013. "A History of the Swedish Pension System," Working Paper Series, Center for Fiscal Studies, Uppsala University, Department of Economics 2013:7, Uppsala University, Department of Economics.
- Säve-Söderbergh, Jenny, 2005. "Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds," Working Paper Series, Swedish Institute for Social Research 7/2005, Swedish Institute for Social Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helena Lundin).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.