Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/258831 
Year of Publication: 
2022
Citation: 
[Journal:] Journal of Risk and Financial Management [ISSN:] 1911-8074 [Volume:] 15 [Issue:] 3 [Article No.:] 108 [Publisher:] MDPI [Place:] Basel [Year:] 2022 [Pages:] 1-21
Publisher: 
MDPI, Basel
Abstract: 
We establish 16 good practice principles for modelling defined contribution pension plans. These principles cover the following issues: model specification and calibration; modelling quantifiable uncertainty; modelling member choices; modelling member characteristics, such as occupation and gender; modelling plan charges; modelling longevity risk; modelling the post-retirement period; integrating the pre- and post-retirement periods; modelling additional sources of income, such as the state pension and equity release; modelling extraneous factors, such as unemployment risk, activity rates, taxes and welfare entitlements; scenario analysis and stress testing; periodic updating of the model and changing assumptions; and overall fitness for purpose.
Subjects: 
defined contribution pension plans
PensionMetrics methodology
OECD Roadmap for the Good Design of Defined Contribution Pension Plans
EIOPA Good Practices on Information Provision for DC Schemes
Enabling Occupational DC Scheme Members to Plan for Retirement
JEL: 
C15
C18
C63
C68
D14
D91
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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