New Considerations about the Switch Criterion for Defined Contribution Pension Scheme
Emanuela Pasqualitto

In this work we have done so, more comprehensive analysis of the model proposed by the Authors Arts and Vigna "A switch criterion for defined contribution pension schemes" for the purpose of considering whether the most realistic market conditions in which to operate, the model itself may allow to obtain better performance. We kept the basic structure of jointly examining the accumulation phase and the distribution phase by inserting the correlation between financial assets. We have also identified a new method for calculating the reserves than the original model and finally we have extended the analysis of the distribution phase including the assumption of income drawdown option with bequest payable to the member's relative. From the results obtained we can therefore say that in more realistic assumptions of market, the switch strategy proposed by the two Authors improves the performance obtained from the model originally formulated.

Full Text: PDF

Copyright © 2014 - 2024 The Brooklyn Research and Publishing Institute. All Rights Reserved.
Brooklyn, NY 11210, United States