Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/195840 
Year of Publication: 
2018
Citation: 
[Journal:] Risks [ISSN:] 2227-9091 [Volume:] 6 [Issue:] 2 [Publisher:] MDPI [Place:] Basel [Year:] 2018 [Pages:] 1-20
Publisher: 
MDPI, Basel
Abstract: 
We study the gap between the state pension provided by the Italian pension system pre-Dini reform and post-Dini reform. The goal is to fill the gap between the old and the new pension by joining a defined contribution pension scheme and adopting an optimal investment strategy that is target-based. We find that it is possible to cover, at least partially, this gap with the additional income of the pension scheme, especially in the presence of late retirement and in the presence of stagnant careers. Workers with dynamic careers and workers who retire early are those who are most penalised by the reform. Results are intuitive and in line with previous studies on the subject.
Subjects: 
pension reform
defined contribution pension scheme
net replacement ratio
stochastic optimal control
dynamic programming
Hamilton-Jacobi-Bellman equation
Bellman's optimality principle
JEL: 
C61
D81
G11
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
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