OECD Journal: Financial Market Trends
- Continues
- Financial Market Trends
- Frequency :
- Semiannual
- ISSN :
- 1995-2872 (online)
- ISSN :
- 1995-2864 (print)
- DOI :
- 10.1787/19952872
The twice-yearly journal from OECD providing timely analyses and statistics on financial matters of topical interest and longer-term developments in specific financial sectors. Each issue provides a brief update of trends and prospects in the international and major domestic financial markets along with articles covering such topics as structural and regulatory developments in OECD financial systems, trends in foreign direct investment, trends in privatization, and financial sector statistics covering areas such as bank profitability, insurance, and institutional investors.
Periodically, a small number of articles within one field of financial sector developments – constituting the so-called special focus for the particular issue – may be included.
Now published as part of the OECD Journal package.
Evaluating risk sharing in private pensions plans
- Publication Date
- 25 Sep 2009
- Pages
- 7
- Bibliographic information
-
- No.:
- 7,
- Volume:
- 2009,
- Issue:
- 1
- Pages
- 163–184
- DOI
- 10.1787/fmt-v2009-art7-en
The principal purpose of this article is to analyse the trade-off between the (un)certainty in contributions on the one hand and benefits on the other that is embedded in different pension arrangements. The article employs the funding ratio (ratio of assets to liabilities) and the replacement rate (ratio of benefits to salaries) as key criteria for evaluating the risk sharing characteristics of a private pension plan from the perspective of the plan member. The stochastic simulations performed show that hybrid plans (those in between traditional DB and individual DC) appear to be more efficient and sustainable forms of risk sharing than either of the other two. Of the three main hybrid plans analysed, conditional indexation plans appear to have the greatest potential as sustainable forms of risk sharing.