Optimal portfolio management for individual pension plans

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.

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Year of publication:	2005
Authors:	Gollier, Christian
Publisher:	Munich : Center for Economic Studies and Ifo Institute (CESifo)
Subject:	Private Rentenversicherung \| Kapitalanlage \| Portfolio-Management \| Lebensalter \| Entscheidung bei Unsicherheit \| Aktie \| Verdienstausfall \| Theorie \| dynamic portfolio choice \| pension plan \| retirement \| time horizon

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Series:	CESifo Working Paper ; 1394
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	479281289 [GVK] hdl:10419/18758 [Handle]
Classification:	G11 - Portfolio Choice
Source:	EconStor

Persistent link: https://www.econbiz.de/10010261134