The Executive Board of Tilburg University has appointed Prof. Dr. Marike Knoef dean of the Tilburg School of Economics and Management. She will take up her new position on February 1, 2023, succeeding interim dean Prof. Dr. Lex Meijdam. Knoef is currently the general director of Netspar. She also serves as the Professor of Empirical Microeconomics at Leiden University and is a deputy Crown…

“Funding ratio is a significant driver of trust in pension funds” Participants’ trust in pension intstitutions (pension funds and government) is crucial because pension providers try to fulfil their pension promises in a fundamentally uncertain world. Therefore, buffers are necessary to cover shocks, like the Great Recession, in order to make good on those promises. But, do shocks to financial buffers, like the funding…

“New proposals will lead to additional DP income for low-income groups” If proposals in the new Future of Pensions Act (Wtp) are accepted, surviving dependants’ pensions (DP) will radically change in the Netherlands. The diverse range of schemes currently on offer will be standardised, thereby improving transparency. This study considers the impact of the proposed changes on DP payments and cost covering premiums and…

“Exploring options for strengthening pensions for everybody” Eroding participation in mandatory pension plans and the reduced scope of intergenerational risk sharing are two problems for which a non-financial defined contribution (NDC) system, also known as a notional DC scheme, can provide a solution. This paper explores the possible implementation of several variants of NDC’s. It also discusses other alternative solutions. Read one pager  …

“Marriage, parenthood and work influence risk preferences” Measuring risk preferences plays an important role in the Future Pensions Act. The financial industry and policymakers often implicitly assume that a person’s risk preferences remain stable over time. However, personal life events could seriously impact these preferences. Therefore this study investigated whether personal changes in marital status, parenthood and employment are associated with changes in risk…

“There is no one size fits all approach” Pension funds are making real strides forward with socially responsible investing (SRI). This is due to a growing emphasis on environmental, social and governance factors in legislation and wider initiatives such as the UN Sustainable Development Goals. Pension fund boards must consider numerous factors when formulating their SRI policy. So how do they ensure that their…

“Concrete policies and inclusive culture needed to effect real change” Diversity and inclusion in pension boards can lead to an enrichment of perspectives, more balanced decision-making, less tunnel vision and increased legitimacy. In view of these benefits, the diversity in pension funds has increased in recent years. However, not all boards achieve the targets laid down in the Code of the Dutch Pension Funds….

“No systematic relation between ESG and worldwide stock returns during past two decades” Sustainable investing is on the rise, and institutional investors increasingly take ESG (Environmental, Social & Governance) considerations into account in their investment strategies. There is still a lot of discussion about the consequences of this for financial returns. So far, the thousands of studies conducted about this subject have yielded conflicting…

“Borrowing constraints do not hamper self-employed more than wage-employed” Buying a home could be an attractive alternative to privately saving for a pension, especially for the self-employed. However, this option could be hampered by borrowing constraints introduced in the wake of the Global Financial Crisis. The higher mortgage down payments required could make it harder for the self-employed to become homeowners and therefore acquire…

“The importance of communication for an understandable and acceptable new pension system” In the new Dutch pension system, participants have more choices but also more uncertainty. Therefore, communication should focus on enabling individuals to understand the system so that they can make appropriate pension choices. But communication also influence acceptance: do people experience the new system and its outcomes as justified? Finally, communication should…