Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216389 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13077
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We show that people exposed to greater pension risk are less likely to invest in risky assets. We exploit a reform that links people's future pension benefits to their pension funds' funding ratio—a measure of the fund's financial health—making funding ratios a fund-specific measure of pension risk. The effect of pension risk is stronger for people who are better informed about their pensions, for retirees and pension-age non-retirees, and for wealthier people. The funding ratio does not affect investments in a pre-reform period, nor does it affect bequest intentions, (expected) retirement, or the motivations for saving.
Subjects: 
individual portfolio choice
background risk
retirement planning
pension reform
The Netherlands
JEL: 
D14
J22
Document Type: 
Working Paper

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