Investment Risk and Private Pensions
Abstract:The financial and economic crisis of 2008 has meant that investment risk has been at the forefront of policy makers minds when thinking about pensions. Private pension funds in OECD countries lost 24% of their value on average, worth USD 5.4 trillion. However, it is important to bear in mind that private pensions are only a part of the overall retirement‐income package: a major part of retirement income is generally not affected by investment risk. In some countries, means‐tested pensions protect low‐income workers from much investment risk and the tax system can also act as an "automatic stabiliser" of retirement incomes.
Document Type: Review Article
Publication date: 2011-03-01