Increasing numbers of countries are using mandatory funded individual accounts to provide retirement. Sweden in 2000 instituted a mandatory funded individual account system that differs in a number of ways from earlier such systems. It incorporates features that reflect lessons learned from...

The central issue of this paper is analysis and resulting proposals to help unsophisticated pension participants achieve pension portfolios that match their level of risk aversion when there is a large amount of unexplained heterogeneity in risk aversion. Target date funds are commonly used as...