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Communicating Pension Risk To Dc Plan Members: The Chilean Case Of A Pension Risk Simulator

Author

Listed:
  • Pablo Antolin
  • Olga Fuentes

    (Studies Division, Chilean Pension Supervisor)

Abstract

The purpose of this paper is to discuss a few issues related to how best to communicate uncertainty about projections of future pension benefits to members of DC plans, and especially to present a pension risk simulator developed by the Chilean regulator (Superintendencia de Pensiones, SP) that addresses directly how to convey that uncertainty and aims at eliciting a pro-active response from individuals in terms of contributing more and for longer..

Suggested Citation

  • Pablo Antolin & Olga Fuentes, 2012. "Communicating Pension Risk To Dc Plan Members: The Chilean Case Of A Pension Risk Simulator," Working Papers 55, Superintendencia de Pensiones, revised Nov 2012.
    • Handle: RePEc:sdp:sdpwps:55
    as

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    File URL: https://repec.spensiones.cl/repec/3_doctrabajos/55_2012_communicating_pension_risk_dc_plan_members.pdf
    File Function: Revised version, 2012
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    References listed on IDEAS

    as
    1. Pablo Antolin & Stéphanie Payet, 2011. "Assessing the Labour, Financial and Demographic Risks to Retirement Income from Defined-Contribution Pensions," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2010(2), pages 189-217.
    2. Pablo Antolín & Debbie Harrison, 2012. "Annual DC Pension Statements and the Communications Challenge," OECD Working Papers on Finance, Insurance and Private Pensions 19, OECD Publishing.
    3. Berstein, Solange & Fuentes, Olga & Villatoro, Félix, 2013. "Default investment strategies in a defined contribution pension system: a pension risk model application for the chilean case," Journal of Pension Economics and Finance, Cambridge University Press, vol. 12(4), pages 379-414, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Stewart, Fiona, 2014. "Proving incentives for long-term investment by pension funds -- the use of outcome-based benchmarks," Policy Research Working Paper Series 6885, The World Bank.
    2. Kees de Van & Daniele Fano & Herialt Mens & Giovanna Nicodano, 2014. "A Reporting Standard for Defined Contribution Pension Plans," CeRP Working Papers 143, Center for Research on Pensions and Welfare Policies, Turin (Italy).

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    More about this item

    Keywords

    Pensions; pension benefits; projections; defined contribution pension plans; financial education; communication; uncertainty;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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