IDEAS home Printed from https://ideas.repec.org/p/sdp/sdpwps/36.html
   My bibliography  Save this paper

In an Individually Funded Pension System: How Can Risks Be Mitigated?

Author

Listed:
  • Solange Berstein
  • Olga Fuentes
  • Nicolás Torrealba

    (Studies Division, Chilean Pension Supervisor)

Abstract

This article presents the main risks that have to be faced in an individually funded pension system and describes the regulations that enable these to be mitigated in the case of Chile. One of these main risks refers to the investment of the funds and an analysis is made of the support that a life-cycle investment strategy might provide in this respect. On evaluating these strategies, there is discussion as to which is the most suitable risk measurement for consideration..

Suggested Citation

  • Solange Berstein & Olga Fuentes & Nicolás Torrealba, 2010. "In an Individually Funded Pension System: How Can Risks Be Mitigated?," Working Papers 36, Superintendencia de Pensiones, revised Feb 2010.
    • Handle: RePEc:sdp:sdpwps:36
    as

    Download full text from publisher

    File URL: https://repec.spensiones.cl/repec/3_doctrabajos/36_2010_individually_funded_pension_system_risks_be_mitigated.pdf
    File Function: Revised version, 2010
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Solange Berstein & Andrea Tokman, 2005. "Brechas de ingreso entre géneros: ¿Perpetuadas o exacerbadas en la vejez?," Working Papers 8, Superintendencia de Pensiones, revised Jul 2005.
    2. Francisco J. Gomes & Laurence J. Kotlikoff & Luis M. Viceira, 2008. "Optimal Life-Cycle Investing with Flexible Labor Supply: A Welfare Analysis of Life-Cycle Funds," American Economic Review, American Economic Association, vol. 98(2), pages 297-303, May.
    3. Waldo Tapia & Juan Yermo, 2007. "Implications of Behavioural Economics for Mandatory Individual Account Pension Systems," OECD Working Papers on Insurance and Private Pensions 11, OECD Publishing.
    4. Francisco Pino & Solange Berstein & Guillermo Larra�n, 2006. "Chilean Pension Reform: Coverage Facts and Policy Alternatives," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 227-279.
    5. Blake, David & Cairns, Andrew J. G. & Dowd, Kevin, 2003. "Pensionmetrics 2: stochastic pension plan design during the distribution phase," Insurance: Mathematics and Economics, Elsevier, vol. 33(1), pages 29-47, August.
    6. Francisco Pino & Solange Berstein & Guillermo Larra�n, 2006. "Chilean Pension Reform: Coverage Facts and Policy Alternatives," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 227-279.
    7. Solange M. Berstein & Rómulo A. Chumacero, 2012. "VaR limits for pension funds: an evaluation," Quantitative Finance, Taylor & Francis Journals, vol. 12(9), pages 1315-1324, May.
    8. Blake, David & Cairns, Andrew J. G. & Dowd, Kevin, 2001. "Pensionmetrics: stochastic pension plan design and value-at-risk during the accumulation phase," Insurance: Mathematics and Economics, Elsevier, vol. 29(2), pages 187-215, October.
    9. Eduardo Fajnzylber & Gonzalo Plaza & Gonzalo Reyes, 2009. "Better-informed Workers and Retirement Savings Decisions: Impact Evaluation of a Personalized Pension Projection," Working Papers 31, Superintendencia de Pensiones, revised Sep 2009.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Solange Berstein & Olga Fuentes & Nicolás Torrealba, 2011. "La Importancia de la Opción por Omisión en los Sistemas de Pensiones de Cuentas Individuales," Working Papers 44, Superintendencia de Pensiones, revised Jan 2011.
    2. Solange Berstein, 2011. "Implementación de la Reforma Previsional en Chile," Working Papers 45, Superintendencia de Pensiones, revised Apr 2011.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Solange Berstein & Olga Fuentes & Nicolás Torrealba, 2010. "Sistema de Pensiones de Capitalización Individual: ¿Cómo Mitigar Riesgos?," Working Papers 35, Superintendencia de Pensiones, revised Feb 2010.
    2. Solange Berstein & Olga Fuentes & Nicolás Torrealba, 2011. "La Importancia de la Opción por Omisión en los Sistemas de Pensiones de Cuentas Individuales," Working Papers 44, Superintendencia de Pensiones, revised Jan 2011.
    3. Solange Berstein, 2011. "Implementación de la Reforma Previsional en Chile," Working Papers 45, Superintendencia de Pensiones, revised Apr 2011.
    4. Eduardo Fajnzylber & Gonzalo Reyes, 2015. "Knowledge, Information, and Retirement Saving Decisions: Evidence from a Large-Scale Intervention in Chile," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 83-117.
    5. Liam A. Gallagher & Fionnuala Ryan, 2017. "A Portfolio Approach to Assessing an Auto-Enrolment Pension Scheme for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 48(4), pages 515-548.
    6. Eduardo Fajnzylber & Gonzalo Reyes, 2015. "Knowledge, Information, and Retirement Saving Decisions: Evidence from a Large-Scale Intervention in Chile," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 83-117, February.
    7. Alejandro Reveiz & Carlos León & Freddy H. Castro & Gabriel piraquive, 2009. "Modelo de simulación del valor de la pensión de un trabajador en Colombia," Borradores de Economia 553, Banco de la Republica de Colombia.
    8. Guillermo Larrain & Simon Ballesteros & Sebastián Garci, 2017. "Longevidad y Pensiones: una Propuesta de Seguro para la Cuarta Edad," Working Papers wp441, University of Chile, Department of Economics.
    9. Alejandro Reveiz & Carlos Le�n & Freddy H. Castro & Gabriel Piraquive, 2009. "Modelo de simulaci�n del valor de la pensi�n de un trabajador en Colombia," Borradores de Economia 5387, Banco de la Republica.
    10. repec:idb:brikps:7677 is not listed on IDEAS
    11. Eduardo Fajnzylber & Gonzalo Plaza & Gonzalo Reyes, 2009. "Better-informed Workers and Retirement Savings Decisions: Impact Evaluation of a Personalized Pension Projection," Working Papers 31, Superintendencia de Pensiones, revised Sep 2009.
    12. Hong‐Chih Huang, 2010. "Optimal Multiperiod Asset Allocation: Matching Assets to Liabilities in a Discrete Model," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 77(2), pages 451-472, June.
    13. Jere R. Behrman & Maria Cecilia Calderon & Olivia S. Mitchell & Javiera Vasquez & David Bravo, 2011. "First-Round Impacts of the 2008 Chilean Pension System Reform," Working Papers wp245, University of Michigan, Michigan Retirement Research Center.
    14. Sergey A. Budko & Dmitry Yu. Fedotov, 2017. "World Experience and Russian Practice of the Pension System’s Revenue Formation: Mathematic Methods of Estimation," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 3(3), pages 199-215.
    15. James, Estelle & Iglesias, Augusto & Cox Edwards, Alejandra, 2008. "Disability insurance with pre-funding and private participation : the Chilean model," Social Protection Discussion Papers and Notes 42268, The World Bank.
    16. Blake, David & Wright, Douglas & Zhang, Yumeng, 2014. "Age-dependent investing: Optimal funding and investment strategies in defined contribution pension plans when members are rational life cycle financial planners," Journal of Economic Dynamics and Control, Elsevier, vol. 38(C), pages 105-124.
    17. Paul Emms & Steven Haberman, 2008. "Income Drawdown Schemes for a Defined‐Contribution Pension Plan," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(3), pages 739-761, September.
    18. Eduardo Fajnzylber, 2012. "Implicit redistribution in the Chilean Social Insurance System," Working Papers wp_019, Adolfo Ibáñez University, School of Government.
    19. Castañeda, Pablo & Castro, Rubén & Fajnzylber, Eduardo & Medina, Juan Pablo & Villatoro, Félix, 2021. "Saving for the future: Evaluating the sustainability and design of Pension Reserve Funds," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).
    20. Rama Malladi, 2022. "HARI: Characteristics of a new defined lifestyle (DL) retirement planning product," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(2), pages 147-163, June.
    21. Rodrigo Ceni, 2017. "Pension schemes and labor supply in the formal and informal sector," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-29, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sdp:sdpwps:36. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cristian Hernández The email address of this maintainer does not seem to be valid anymore. Please ask Cristian Hernández to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/spegvcl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.