Risk-return preferences in the pension domain: Are people able to choose?

• 成果类型: Article
• 署名作者: van Rooij, Maarten C. J.; Kool, Clemens J. M.; Prast, Henriette M.
• 署名单位: Utrecht University; Tilburg University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2006.08.003
• 发表日期: 2007
• 页码: 701-722
• 关键词: investor autonomy; pension preferences; risk tolerance; defined contribution schemes

摘要

This paper presents new evidence for the Netherlands on pension preferences and investor autonomy in the pension domain using a representative survey of about 1000 Dutch citizens. Our main conclusions are the following. Risk aversion is domain dependent and highest in the pension domain. The vast majority of respondents favours the currently dominant defined benefit pension system. If offered a combined defined benefit/defined contribution system, the majority would like to have a guaranteed pension income of at least 70% of their net labour income. Self-assessed risk tolerance and financial expertise are important individual explanatory variables of pension attitudes. The average respondent considers himself financially unsophisticated and is reluctant to take control of retirement savings investment, even when offered the possibility to increase expertise. Respondents who have chosen a relatively safe portfolio tend to switch to the riskier median portfolio when they are shown future income streams. This again suggests that many respondents currently lack the skills to have investor autonomy over investment for retirement. (c) 2006 Elsevier B.V. All rights reserved.