We address potential strengths and weaknesses of alternative protection schemes, which can be adopted as a default option in a private, third pillar, pension product. In light of the observed behavior of savers adopting the default option at international level, we perform a comparative analysis aimed at quantifying the costs and the benefits of two different risk mitigation techniques and market-standard investment products available to European consumers. We make the case for eligibility of life- cycle target-date funds as default option for the pan-European pension products.

Consumer Protection and the Design of the Default Option of a Pan-European Pension Product

Berardi, Andrea
;
2018

Abstract

We address potential strengths and weaknesses of alternative protection schemes, which can be adopted as a default option in a private, third pillar, pension product. In light of the observed behavior of savers adopting the default option at international level, we perform a comparative analysis aimed at quantifying the costs and the benefits of two different risk mitigation techniques and market-standard investment products available to European consumers. We make the case for eligibility of life- cycle target-date funds as default option for the pan-European pension products.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10278/3713003
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