Rudolph, HeinzCheikhrouhou, HelaRocha, RobertoThorburn, Craig2012-05-312012-05-3120070-8213-7117-7https://hdl.handle.net/10986/6785This paper provides an assessment of the funded pension system and the quality of the regulatory framework for both accumulation and payout phase. It suggests that the lack of portfolio diversification may contribute in the future to low returns and poor pensions and provides a number of recommendations to expand the opportunities of investments to pension funds. The paper also finds that pension fund administrators are not exploiting the scale economies in certain areas of the business such as collection of revenues and account management, and propose mechanisms to reduce costs and increase efficiency through greater competition. The paper examines the products and options offered at the retirement age, and finds a bias toward the payment of pensions in the form of lump sums and suggests alternatives for improving the availability of other instruments. Enhancements in the regulatory framework of insurance companies are also proposed.en-USCC BY 3.0 IGOACCOUNTINGAGE-EARNINGSAGE-EARNINGS PROFILESASSET CLASSASSET CLASSESASSET MANAGEMENTASSET MANAGERSAVERAGE WAGEBANKING CRISISBANKRUPTCYBANKSBARRIER TO ENTRYBASE WAGEBASIS POINTSBENEFICIARIESBENEFIT FORMULABOND FUNDSBOND SPREADSCAPITAL GAINCAPITAL GAINSCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL REQUIREMENTSCDSCENTRAL BANKCONTINGENT LIABILITYCONTRIBUTIONCONTRIBUTION RATECONTRIBUTION RATESCONTRIBUTIONSCORPORATE BONDCORPORATE BOND MARKETCORPORATE BONDSCORPORATE GOVERNANCECREDIBILITYCREDIT RISKCURRENCYCURRENCY RISKDEBT FINANCINGDEFICITSDERIVATIVESDISCOUNT RATEDIVERSIFIED PORTFOLIOSDOMESTIC CAPITALDOMESTIC CAPITAL MARKETDOMESTIC DEBTDOMESTIC EQUITYECONOMIC DEVELOPMENTELIGIBLE INVESTMENTSEMPLOYMENT HISTORYEQUITY FUNDSEQUITY HOLDINGSEXPENDITURESEXTERNAL DEBTFEDERAL BUDGETFINANCIAL ASSETSFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL SECTORFINANCIAL SYSTEMFISCAL BURDENFISCAL DEFICITFISCAL POLICYFIXED INCOMEFIXED INCOME MARKETFIXED INCOME SECURITIESFOREIGN EQUITYFOREIGN EXCHANGEFOREIGN INVESTMENTSFOREIGN MARKETFOREIGN MARKETSFUND MANAGERSGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT PAPERGUARANTEE FUNDHOLDINGHOLDINGS OF GOVERNMENT SECURITIESINCOME INSTRUMENTSINCOME SECURITYINCOMESINDEPENDENT FINANCIAL ADVICEINDIVIDUAL ACCOUNTINDIVIDUAL ACCOUNTSINDIVIDUAL PENSIONINFLATIONINFLATION RATEINFORMED DECISIONINFRASTRUCTURE BONDINFRASTRUCTURE BONDSINSTITUTIONAL INVESTORSINSTRUMENTINSURANCEINSURANCE INDUSTRYINSURANCE PENETRATIONINSURANCE POLICYINSURANCE PREMIUMINSURANCE PREMIUMSINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL FINANCEINTERNATIONAL PORTFOLIOINVESTMENT CORPORATIONINVESTMENT DECISIONSINVESTMENT FUNDSINVESTMENT PORTFOLIOSINVESTMENT REGIMEINVESTMENT REGULATIONINVESTMENT REGULATIONSINVESTMENT STRATEGIESINVESTMENTS IN EQUITYISSUANCEJOINT STOCK COMPANIESLABOR FORCELABOR MARKETLABOR MARKETSLEVYLIFE INSURANCELIFE INSURANCE COMPANIESLIFE INSURANCE COMPANYLIFE INSURANCE PREMIUMSLIQUIDITYLONG-TERM ASSETSLUMP SUMLUMP SUMSMARKET CAPITALIZATIONMARKET FOR GOVERNMENT SECURITIESMARKET INSTRUMENTSMARKET PARTICIPANTSMARKET SHAREMARKET SHARESMARKET STRUCTUREMATURITYMINIMUM CONTRIBUTIONMINIMUM PENSIONMINIMUM WAGEMINIMUM WAGESMONEY MARKETMORTGAGEMORTGAGE BONDSMORTGAGE-BACKED SECURITIESMUTUAL FUNDMUTUAL FUND INDUSTRYMUTUAL FUNDSNATIONAL SAVINGSNOMINAL YIELDPENSIONPENSION ASSETSPENSION FUNDPENSION FUND ADMINISTRATORSPENSION FUND ASSETSPENSION FUND INVESTMENTSPENSION FUND RETURNSPENSION FUNDSPENSION REFORMPENSION SCHEMEPENSION SCHEMESPENSION SYSTEMPENSION SYSTEM REFORMSPENSION SYSTEMSPENSIONERSPENSIONSPORTFOLIOPORTFOLIO ALLOCATIONPORTFOLIO DIVERSIFICATIONPORTFOLIO MANAGEMENTPORTFOLIO REGULATIONPORTFOLIOSPORTFOLIOS OF PENSION FUNDSPOVERTY ALLEVIATIONPRIMARY MARKETPRIVATE EQUITYPRIVATE PENSIONPRIVATE PENSION FUNDPRIVATE PENSION FUNDSPUBLIC DEBTPUBLIC SECTOR DEBTRATE OF GROWTHRATE OF RETURNRATES OF RETURNREGULATORY CONSTRAINTSREGULATORY FRAMEWORKRESERVERESERVESRETIREDRETIRED WORKERSRETIREMENTRETIREMENT AGERETIREMENT PRODUCTSRETURNSRETURNS ON EQUITYSAFETY NETSALESSALES AGENTSSECONDARY MARKETSHARE OF GOVERNMENT SECURITIESSHAREHOLDERSSOCIAL ASSISTANCESOCIAL SECURITYSOLVENCYSOVEREIGN RISKSTOCK EXCHANGESTOCKSSUPERVISORY AGENCYTAXTAX REGIMETAX RULESTERM DEPOSITSTOTAL DEBTTREASURYTREASURY BONDSTURNOVERVALUABLEWAGEWAGE GROWTHWAGESWITHDRAWALWORKING LIFEWORKING LIVESYIELD CURVEYIELD CURVESWorld Bank10.1596/978-0-8213-7117-6