Byrne, A. and Blake, D. and Cairns, A. and Dowd, K. (2007) Default funds in U.K. defined-contribution plans. Financial Analysts Journal, 63 (4). pp. 40-51. ISSN 0015-198X
Full text not available in this repository. (Request a copy from the Strathclyde author)Abstract
Most defined-contribution (DC) pension plans give members a degree of choice as to the investment strategy for their contributions. For members unable or unwilling to choose their own investment strategies, many plans also offer a default fund. This article analyzes the U.K. "stakeholder" DC plans, which must by law offer a default fund. The default funds are typically risky but vary substantially among the providers in their strategic asset allocation and in their use of life-cycle plans that reduce risk as planned retirement approaches. A stochastic simulation model demonstrates that the differences can have a significant effect on the distribution of potential pension outcomes.
| Item type: | Article |
|---|---|
| ID code: | 5584 |
| Keywords: | pension plans, investment, Commerce |
| Subjects: | Social Sciences > Commerce |
| Department: | Strathclyde Business School > Accounting and Finance |
| Related URLs: | |
| Depositing user: | Strathprints Administrator |
| Date Deposited: | 14 Mar 2008 |
| Last modified: | 12 Mar 2012 10:43 |
| URI: | http://strathprints.strath.ac.uk/id/eprint/5584 |
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