Optimization of the Actuarial Model of Defined Contribution Pension Plan. (12th June 2014)

• Record Type: Journal Article
• Authors: Li, Yan; Huang, Yuchen; Zhou, Yancong
• Other Names: Sun Xiaochen Academic Editor.
• Is Part Of: Discrete dynamics in nature and society. Volume 2014(2014)
• Publication Date: 2014-06-12
• Subjects: System analysis -- Periodicals; Dynamics -- Periodicals; Chaotic behavior in systems -- Periodicals; Differentiable dynamical systems -- Periodicals; 003.05
• DOI: 10.1155/2014/576213
• Languages: English
• ISSNs: 1026-0226

Abstract

Abstract : The paper focuses on the actuarial models of defined contribution pension plan. Through assumptions and calculations, the expected replacement ratios of three different defined contribution pension plans are compared. Specially, more significant considerable factors are put forward in the further cost and risk analyses. In order to get an assessment of current status, the paper finds a relationship between the replacement ratio and the pension investment rate using econometrics method. Based on an appropriate investment rate of 6%, an expected replacement ratio of 20% is reached.