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Administrative charges for funded pensions: An international comparison and assessment

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  • Whitehouse, Edward

Abstract

Pension fund charges reduce the rate of return on pension accounts in some countries by up to by two percentage points. Do charges of this scale undermine the case for funded pension provision? How can governments hold back costs and charges? This paper looks at evidence from thirteen countries, with policies ranging from complete liberalization of charge levels of structures to government imposed charge ceilings. The author stresses the trade-offs in limiting charges, especially in reduced competition and choice.

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  • Whitehouse, Edward, 2000. "Administrative charges for funded pensions: An international comparison and assessment," MPRA Paper 14172, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:14172
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    Cited by:

    1. Luca Agnello & Nikola Altiparmakov & Michal Andrle & Maria Grazia Attinasi & Jan Babeck� & Salvador Barrios & John Bluedorn & Vladimir Borgy & Othman Bouabdallah & Andries Brandsma & Adi Brender & V, 2016. "Beyond the austerity dispute: new priorities for fiscal policy," Workshop and Conferences 20, Bank of Italy, Economic Research and International Relations Area.
    2. Richard Disney & Carl Emmerson & Sarah Smith, 2004. "Pension Reform and Economic Performance in Britain in the 1980s and 1990s," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 233-274, National Bureau of Economic Research, Inc.
    3. Adi Brender, 2009. "Distributive Effects of Israel's Pension System," Bank of Israel Working Papers 2009.10, Bank of Israel.
    4. Kunibert Raffer, 2011. "Neoliberal Capitalism: A Time Warp Backwards to Capitalism’s Origins?," Forum for Social Economics, Springer;The Association for Social Economics, vol. 40(1), pages 41-62, April.
    5. Helen Higgs & Andrew C. Worthington, 2010. "Economies of Scale and Scope in Australian Superannuation Funds," Discussion Papers in Finance finance:201015, Griffith University, Department of Accounting, Finance and Economics.
    6. Whitehouse, Edward, 2001. "Pension systems in 15 countries compared: the value of entitlements," MPRA Paper 14751, University Library of Munich, Germany.
    7. Katja Funke & Georg Stadtmann, 2004. "Operations of a Pension Fund after the Asian Crisis: The Thai Experience," Asian Economic Journal, East Asian Economic Association, vol. 18(4), pages 439-470, December.
    8. World Bank, 2004. "Peru : Restoring the Multiple Pillars of Old Age Income Security," World Bank Publications - Reports 14681, The World Bank Group.
    9. Javier Alonso & Jasmina Bjeletic & David Tuesta, 2010. "Reasons to justify fees on assets in the Peruvian private pension sector," Working Papers 1024, BBVA Bank, Economic Research Department.
    10. Yu-Wei Hu, 2006. "China's Pension Reform: A Precondition Approach," Global Economic Review, Taylor & Francis Journals, vol. 35(4), pages 413-424.
    11. Luca Di Gialleonardo & Mauro Marè, 2015. "The efficiency of Italian pension funds: costs, membership, assets," Working papers 21, Società Italiana di Economia Pubblica.
    12. Palacios, Robert, 2002. "Managing public pension reserves Part II : lessons from five recent OECD initiatives," Social Protection Discussion Papers and Notes 33407, The World Bank.
    13. Di Gialleonardo, Luca & Mare, Mauro, 2016. "The efficiency of Italian pension funds: costs, membership, assets," MPRA Paper 76064, University Library of Munich, Germany, revised Aug 2016.
    14. J.A. Bikker, 2013. "Is there an optimal pension fund size? A scale-economy analysis of administrative and investment costs," Working Papers 13-06, Utrecht School of Economics.
    15. Sluchynsky, Oleksiy, 2015. "Defining, measuring, and benchmarking administrative expenditures of mandatory social security programs," Social Protection Discussion Papers and Notes 95198, The World Bank.
    16. Impavido, Gregorio & Rocha, Roberto, 2006. "Competition and performance in the Hungarian second pillar," Policy Research Working Paper Series 3876, The World Bank.
    17. International Monetary Fund, 2007. "Mexico: Financial Sector Assessment Program Update: Technical Note: Industrial Organization and Competition: Pension System in Mexico," IMF Staff Country Reports 2007/164, International Monetary Fund.
    18. Sarker, Indranil & Datta, Bidisha, 2022. "Re-designing the pension business processes for achieving technology-driven reforms through blockchain adoption: A proposed architecture," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    19. Martin, John P. & Whitehouse, Edward, 2008. "Reforming Retirement-Income Systems: Lessons from the Recent Experiences of OECD Countries," IZA Discussion Papers 3521, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    pensions; administrative charges;

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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