1887

OECD Working Papers on Finance, Insurance and Private Pensions

Selected studies on finance, insurance and private pensions policy prepared for dissemination in order to stimulate wider discussion and further analysis and obtain feedback from interested audiences. The studies provide timely analysis and background on industry developments, structural issues, and public policy in the financial sector. Topics include risk management, governance, investments, benefit protection, and financial education. Previous papers addressing these policy issues are available via http://dx.doi.org/10.1787/19936397.

English

Communicating Pension Risk to DC Plan Members

The Chilean Case of a Pension Risk Simulator

The purpose of this paper is to discuss a few issues related to how best to communicate uncertainty about projections of future pension benefits to members of DC plans, and especially to present a pension risk simulator developed by the Chilean regulator (Superintendencia de Pensiones, SP) that addresses directly how to convey that uncertainty and aims at eliciting a pro-active response from individuals in terms of contributing more and for longer.

English

Keywords: communication, projections, financial education, uncertainty, pension risk simulator, pension benefit, pensions, defined contribution pension plans
JEL: I28: Health, Education, and Welfare / Education and Research Institutions / Education: Government Policy; D14: Microeconomics / Household Behavior and Family Economics / Household Saving; Personal Finance; J26: Labor and Demographic Economics / Demand and Supply of Labor / Retirement; Retirement Policies; O19: Economic Development, Innovation, Technological Change, and Growth / Economic Development / International Linkages to Development; Role of International Organizations; D18: Microeconomics / Household Behavior and Family Economics / Consumer Protection; G28: Financial Economics / Financial Institutions and Services / Financial Institutions and Services: Government Policy and Regulation; O16: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance; G23: Financial Economics / Financial Institutions and Services / Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
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