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The Value and Risk of Defined Contribution Pension Schemes: International Evidence


  • Edmund Cannon
  • Ian Tonks


Using data on historical returns on international financial assets, the paper simulates pension fund and pension replacement ratios, building up frequency distributions of these ratios for individuals saving in a defined contribution pension plan in different countries. These frequency distributions illustrate the risk in the pension replacement ratio faced by an individual who saves in a typical defined contribution pension scheme.
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Suggested Citation

  • Edmund Cannon & Ian Tonks, 2013. "The Value and Risk of Defined Contribution Pension Schemes: International Evidence," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 80(1), pages 95-119, March.
  • Handle: RePEc:bla:jrinsu:v:80:y:2013:i:1:p:95-119
    DOI: j.1539-6975.2011.01456.x

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    References listed on IDEAS

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    Cited by:

    1. Daniel McFadden, 2015. "Comment on "Liquidity in Retirement Savings Systems: An International Comparison"," NBER Chapters,in: Insights in the Economics of Aging, pages 75-85 National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions


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