The young held to ransom - a public choice analysis of the UK state pension system

Author(s):

Philip Booth

Topic:
Finance

There are serious flaws in the so-called citizens pension much promoted by interest groups in the UK.

Updated: 22/09/2011
Comments:
Views: 5,124

Pension provision: government failure around the world

Author(s):

Philip Booth

Topic:
Finance

This monograph surveys the results of government intervention in the market for retirement income provision throughout the world. The authors begin by looking at high-income democracies in which governments have, to a large degree, taken over the function of providing pensions.

Updated: 22/09/2011
Comments:
Views: 4,781

Default funds in UK defined-contribution plans

Most defined-contribution (DC) pension plans give members a degree of choice as to the investment strategy for their contributions.

Updated: 22/09/2011
Comments:
Views: 5,207

Perspectives: designing a defined-contribution plan - what to learn from aircraft designers

This article uses the framework of designing a commercial aircraft to illustrate how a personal defined-contribution (DC) pension plan should be designed if it is to achieve its objective of delivering an adequate and secure retirement pension. The article's suggestions are based on similarities between a DC pension plan and an aircraft journey. For example, the strategic investment strategy is analogous to the aircraft, the plan provider is analogous to the aircraft operator, the contributions are analogous to the fuel, and the accumulation and decumulation stages are analogous to the climb and descent stages of the flight. The significant differences that exist between the two concepts are also highly instructive.

Updated: 22/09/2011
Comments:
Views: 5,426

What is a promise from the government worth? Quantifying political risk in state and personal pension schemes in the United Kingdom

There are three key types of political risk facing pension schemes: those induced by demographic, economic and pure political factors.

Updated: 22/09/2011
Comments:
Views: 5,151

The myth of Methuselah and the uncertainty of death: the mortality fan charts

This paper uses mortality fan charts to illustrate prospective future male mortality. These fan charts show both the most likely path of male mortality and the bands of uncertainty surrounding that path. The fan charts are based on a model of male mortality that is known to provide a good fit to recent UK mortality data. The fan charts suggest that there are clear limits to longevity, that future mortality rates are very uncertain and tend to become more uncertain the further ahead the forecast, and that forecasts of future mortality uncertainty must take account of uncertainty in the parameters of the underlying mortality model.

Updated: 22/09/2011
Comments:
Views: 5,584

Delivering DC? barriers to participation in the company-sponsored pensions market

'Delivering DC? barriers to participation in the company-sponsored pensions market', reveals that finance directors often oppose greater employee participation in company pension schemes.

Updated: 22/09/2011
Comments:
Views: 5,186

Turning pension plans into pension planes: what investment strategy designers of defined contribution pension plans can learn from commercial aircraft designers

Many, if not most, individuals cannot be regarded as 'intelligent consumers' when it comes to understanding and assessing different investment strategies for their defined contribution pension plans. This gives very little incentive to plan providers to improve the design of their pension plans.

Updated: 22/09/2011
Comments:
Views: 5,111

Annuities and accessibilility: how the industry can empower consumers to make rational choices

Author(s):

David Blake

Topic:
Finance

The report calls on the Financial Services Authority, specialist annuity advisers, trustees and employers to respond to key recommendations that could transform the way consumers in the mass market buy their lifetime annuities from insurance companies.

Updated: 22/09/2011
Comments:
Views: 5,116