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rational and irrational motives to save money, answers to questions about the effects of saving liquid money on labor supply …, illiquid saving and education, and examines the inherent cost of saving cash. The main findings are the following. The rational … insurance motive to save money increases total savings by replacing deposit saving more than one-to-one. The share of deposit …
Persistent link: https://www.econbiz.de/10014230960
I show that risk-sharing pension plans can reduce some of the shortcomings of defined benefit and defined contributions plans. The risk-sharing pension plan presented aims to improve the stability of benefits paid to generations of members, while allowing them to enjoy the expected advantages of...
Persistent link: https://www.econbiz.de/10011636555
In the linear coinsurance problem, examined first by Mossin (1968), a higher absolute risk aversion with respect to wealth in the sense of Arrow–Pratt implies a higher optimal coinsurance rate. We show that this property does not hold for health insurance under ex post moral hazard; i.e., when...
Persistent link: https://www.econbiz.de/10011556667
saving or informal care. This contribution predicts crowding-out effects for both private saving and informal care for policy … of inheritance. These effects result from the interaction of a parent who decides on the amount of saving in retirement …
Persistent link: https://www.econbiz.de/10010509443
Low saving rates combined with low effective retirement age herald old-age poverty. This paper examines the preferred … a first-best strategy, we explore determinants of supplementary saving with binary logistic models; as a second …
Persistent link: https://www.econbiz.de/10012426994
standard model, which showed strong demand for life annuities), and annuities are rarely purchased; (2) optimal consumption …
Persistent link: https://www.econbiz.de/10011866415
Life Insurance Retirement Plans (LIRPs) offer tax-deferred cash value accumulation, tax-free withdrawals (if properly structured), and a tax-free death benefit to beneficiaries. Thus, LIRPs share many of the tax advantages of other retirement savings vehicles but with less restrictive...
Persistent link: https://www.econbiz.de/10012018693
Interest rate benchmarks are currently undergoing a major transition. The LIBOR benchmark is planned to be discontinued by the end of 2021 and superseded by what ISDA calls an adjusted risk-free rate (RFR). ISDA has recently announced that the LIBOR replacement will most likely be constructed...
Persistent link: https://www.econbiz.de/10012203790
Guarantees are often seen as the key characteristics of pension saving products, but securing them can become costly … deal with the question of how costly the typical types of guarantees are, in the sense that they reduce a pension saving …
Persistent link: https://www.econbiz.de/10011402676
This study proposes a structured product (SP) for hedging defined contribution pension fund members against capital market risk. Using Monte Carlo simulations on three different guaranteed returns to test the investment strategy of the SP against a balanced investment portfolio, we measure their...
Persistent link: https://www.econbiz.de/10014334531