Impavido, GregorioLasagabaster, EsperanzaGarcia-Huitron, Manuel2012-03-192012-03-192010978-0-8213-8276-9https://hdl.handle.net/10986/2462The recent financial crisis is challenging the reform approach to mandated pension a scheme that has emerged over recent decades across the world. This reform approach is characterized by a move toward multi-pillar pension systems and includes the creation or extension of a mandatory funded pillar with defined contribution design. The rationale and viability of such a pillar is contingent on an enabling environment and the delivery of high risk-adjusted net rates of return that beat the natural benchmark, which is the internal rate of return that an unfunded mandated scheme is able to achieve. Two key aspects of mandated and funded defined contribution schemes have been under discussion and investigation since dedicated pension funds were created: (a) the high fees levied by privately organized pension funds and the consequence for the net rate of return; and (b) the investment products of these funds and their capability to address the investment risks and to deliver the expected retirement income in a life-cycle context. To this end, country policies have experimented with a variety of approaches to improve outcomes with some important leads but overall modest results. This book proposes to take a fresh and highly innovative look at both policy issues. It suggests stepping back and looking at the underlying causes of the issues at stake instead of merely trying to address their symptoms. In addressing the high fees of pension funds, it focuses on the less-than-ideal conditions inert consumers facing firms with market powers and proposes to apply solutions derived from industrial organization models and pricing methods that better reflect the cost structure of the supply of pension services. In addressing the investment risks, it asks how to improve fund managers' risk-adjusted investment performance when participants are inert.CC BY 3.0 IGOACCOUNTINGADMINISTRATIVE COSTSADMINISTRATIVE FEEADMINISTRATIVE FEESAMOUNT OF CAPITALANNUAL STATEMENTSANONYMOUS REVIEWERSASSET ALLOCATIONASSET ALLOCATIONSASSET BASEASSET MANAGEMENTASSET MANAGERASSET MANAGERSASSET PORTFOLIOASSET PRICESAUCTIONAUCTION MECHANISMSBANKSBARRIERS TO ENTRYBEHAVIORAL ECONOMICSBEQUESTBEQUESTSBONDSBUSINESS PLANBUSINESS SCHOOLCALCULATIONSCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL MARKETSCAPITAL REQUIREMENTSCASH BALANCESCOLLATERALCOMPETITIVE MARKETSCONFLICTS OF INTERESTCONSUMERCONSUMER BEHAVIORCONSUMER PROTECTIONCONSUMERSCONTRIBUTIONCONTRIBUTION RATESCONTRIBUTION SCHEMESCONTRIBUTION SYSTEMSCORPORATE GOVERNANCECUSTOMER BASEDEFERRED ANNUITIESDEFICITSDEFINED CONTRIBUTION PENSIONDEFINED CONTRIBUTION PENSIONSDEVELOPMENT BANKDISABILITYDISABILITY INSURANCEDISPOSABLE INCOMEDIVERSIFICATIONEARNINGSEMERGING MARKETSENABLING ENVIRONMENTENTRY BARRIERSEQUITIESEQUITY INVESTMENTEXPENDITUREEXPENDITURESFEE STRUCTURESFINANCIAL ASSETSFINANCIAL CRISISFINANCIAL DECISIONSFINANCIAL ECONOMISTFINANCIAL EDUCATIONFINANCIAL EDUCATION PROGRAMSFINANCIAL GROUPFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL MARKET DEVELOPMENTFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SERVICEFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL TRANSACTIONSFISCAL POLICYFIXED COSTSFRAUDFUND MANAGERFUND MANAGERSGLOBALIZATIONGOVERNMENT INTERVENTIONGROSS DOMESTIC PRODUCTHOLDINGHOLDINGSINCOMEINDIVIDUAL ACCOUNTINDIVIDUAL ACCOUNTSINDIVIDUAL SAVINGSINHERITANCEINSURANCEINSURANCE COMPANIESINSURANCE MARKETSINTERNAL RATE OF RETURNINTERNATIONAL BANKINTERNATIONAL FINANCEINVESTMENT CHOICEINVESTMENT CHOICESINVESTMENT CLIMATEINVESTMENT DECISIONINVESTMENT DECISIONSINVESTMENT FUNDSINVESTMENT PERFORMANCEINVESTMENT PRODUCTSINVESTMENT REGULATIONINVESTMENT RISKINVESTMENT RISKSINVESTMENT STRATEGIESINVESTMENT STRATEGYINVESTOR PROTECTIONJOB CREATIONLACK OF INTERESTLEVYLIABILITYLIFETIMELONG-TERM ASSETLONG-TERM INVESTMENTLOSS AVERSIONLOW FINANCIAL LITERACYLOW INCOMELOW-INCOMELOW-INCOME CONSUMERSMANDATORY PENSION FUNDSMARKET CONCENTRATIONMARKET DISCIPLINEMARKET INCENTIVESMARKET RISKMARKET SHAREMARKET SHARESMARKETINGMARKETING EFFORTSMARKETING STRATEGIESMASS MEDIAMONETARY FUNDMUTUAL FUNDNET WORTHOLIGOPOLYOPTIMAL INVESTMENTORIGINAL INVESTMENTPENSION ACCOUNTPENSION ASSETPENSION ASSETSPENSION CONTRIBUTIONSPENSION FUNDPENSION FUND ADMINISTRATORPENSION FUND ADMINISTRATORSPENSION FUNDSPENSION INCOMEPENSION MARKETPENSION MARKETSPENSION PLANPENSION PLANSPENSION POLICYPENSION PRODUCTSPENSION REFORMPENSION REFORMSPENSION SCHEMESPENSION SYSTEMPENSION SYSTEMSPOLICY RESPONSESPORTFOLIOPORTFOLIO CHOICEPORTFOLIO MANAGEMENTPORTFOLIOSPRIVATE PENSIONPRIVATE PENSIONSPROBABILITYPRODUCTIVITYPROVISION OF INFORMATIONPRUDENTIAL REGULATIONPUBLIC INFORMATION CAMPAIGNSPUBLIC PENSIONPURCHASING POWERRATE OF RETURNRATES OF RETURNRATES OF RETURNSRECORD KEEPINGREGULATORY BARRIERREGULATORY FRAMEWORKREMITTANCESRENTSREPLACEMENT RATESRESERVERESERVESRESUMERETIREMENTRETIREMENT AGERETIREMENT DATERETIREMENT INCOMERETURNS ON EQUITYRISK DIVERSIFICATIONRISK PREMIUMRISK SHARINGSALARIESSALARYSALESALESSALES AGENTSALES AGENTSSALES TACTICSSAVERSSENIORSOCIAL PROTECTIONSOCIAL SECURITYSOCIAL SECURITY PENSIONSOCIAL WELFARESTART-UP COSTSSUPERANNUATION SYSTEMSUPERVISORY AGENCYTAXTAX POLICYTRUSTEEVALUABLEVALUE OF ASSETSVALUE OF PENSIONSVOLUNTARY PLANSWorld Bankhttps://doi.org/10.1596/978-0-8213-8276-9