Optimal portfolio management for individual pension plans

Arbeitspapier

We explore the various arguments for and against the recommendation that younger households should invest a larger share of their pension wealth in risky assets. The ability of young agents to compensate their financial losses by saving more during their career provides the strongest argument in favour of younger people investing more aggressively in the stock market. Meanreversion in stock returns yields another argument. However, the uninsurability of the risky human capital goes in the opposite direction, together with the imperfect knowledge that young investors have about the distribution of asset returns.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 1394

Classification and Topics

• Classification: Wirtschaft ; Portfolio Choice; Investment Decisions
• Subject: dynamic portfolio choice ; pension plan ; retirement ; time horizon ; Private Rentenversicherung ; Kapitalanlage ; Portfolio-Management ; Lebensalter ; Entscheidung bei Unsicherheit ; Aktie ; Verdienstausfall ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gollier, Christian
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/18758
• Last update: 10.03.2025, 11:44 AM CET