The Recovery Potential for Underfunded Pension Plans

Authors
Publication date 10-2021
Series Netspar Design Paper, 190
Number of pages 39
Publisher Tilburg: Netspar
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
  • Faculty of Economics and Business (FEB)
Abstract Pension funds have the ambition to provide participants with an income stream after retirement that maintains their standard of living in real terms. Low interest rates since 2008 have made it harder for pension funds to meet this real ambition for their participants. Measured in real terms (i.e. including price indexation), Dutch pension funds are severely underfunded. In this paper we ask the question: which investment strategy can best be deployed to maximise the probability of reaching a “real ambition”?
Document type Report
Language English
Published at https://www.netspar.nl/en/publication/the-recovery-potential-for-underfunded-pension-plans/
Permalink to this page
Back