above the expected growth rate of the economy and when thegovernment has a lifetime perspective of the risk exposure. The …

We explore the feasibility of a funded pension system with intergenerational risk sharing when participation in the … increases with risk aversion and financial market uncertainty. We find that it is likely that mandatory participation is … necessary to sustain a funded pension pillar and to let participants benefit from intergenerational risk sharing. …

entail beneficial risk-sharing and diversification features. However, depending on the "pension formula" these features vary … significantly for different types of PAYG schemes. We derive individually most-preferred PAYG rules (represented by a risk …