Assuming loss aversion, stochastic investment and labor income processes, and a path-dependent target fund, we show that the optimal investment strategy for defined contribution pension plan members is a target-driven 'threshold' strategy. With this strategy, the equity allocation is increased...

A defined contribution pension plan allows consumption to be redistributed from the plan member's working life to retirement in a manner that is consistent with the member's personal preferences. The plan's optimal funding and investment strategies therefore depend on the desired profile of...

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....

A single valuation basis (using market values) now dominates the valuation of pension scheme assets and has replaced the previously dominant actuarial and accounting bases.The same cannot be said for pension scheme liabilities. There are three different valuation bases for liabilities currently...

The objective of the research was to analyse and evaluate the role of real estate in the UK's defined contribution (DC) pensions market in relation to auto-enrollment – the new system of pension scheme provision for private sector employees in the UK, which is being phased in by all employers...

Dealing with the reluctant investor examines the governance of defined contribution (DC) schemes with reference to investment choice and, in particular, the design of the default fund. We explain where and why the current system fails to support DC scheme members and what steps can be taken to...

The purpose of this Report was to identify areas that might be considered in a full benchmarking study of the investment governance of the 34 London Local Government Pension Schemes (LGPSs). The preliminary results of our research indicated that in certain cases key decision-makers are...

"Greatest Good 2" follows-up and repeats the findings of our earlier December 2015 discussion paper ("The Greatest Good for the Greatest Number") that 1,000 occupational defined benefit pension schemes are stressed as a result of having a financially weak sponsors. The slide of many these...

Using a unique dataset that covers UK defined-benefit pension fund asset allocations over the past 25 years, we study the investment behavior of pensions funds. The results suggest that pension funds display strong herding behavior, and tend to herd in subgroups, moving in and out of different...

Defined Benefit (DB) pension schemes have prevalence in certain countries, most notably the UK. This is also the case for Ireland. Underfunding of DB pension schemes is prevalent throughout the Western world, and no more so than Ireland. This paper examines underfunding of DB schemes in Ireland...