Assessing second pillar pensions for insurance companies by means of scenario analysis
Reconciling short term risks
Academic Paper
5 February 2014
This thesis compares eight different pension schemes on a number of features. The schemes are DB, DC and hybrid schemes. For this comparison it uses thousand economic scenarios that differ in terms of stock returns, interest rates and inflation. The results are presented as replacement rates and average costs. For the evaluation we used a mechanism that assigns grades to a number of features. Finally, we make recommendations on the basis of the economic literature and the reports by two Dutch committees.