Are age-based life-cycle saving strategies for funded pension schemes a good option?

Šebo, Ján, 1978-

Are age-based life-cycle saving strategies for funded pension schemes a good option? = Sú sporivé stratégie založené na veku vhodným riešením pre kapitalizačné dôchodkové schémy? / Ján Šebo, Daniela Danková, Ivan Králik. -- Searching for the optimal saving strategy is often limited to life-cycle strategies, where only the age of a saver is considered for setting the allocation profile between equities and bonds. Our article contributes to the debate by looking at the performance and adequacy risks arising from applying age-based saving strategies for savers in funded pension schemes. Using the resampling simulation technique, we compare the fixed and age-based strategies from the point of performance, maximum draw-down occurring during the saving horizon and adequacy risk arising from applied saving strategy. We conclude that age-based life-cycle saving strategies, where the remaining saving horizon is the only factor defining the allocation profile is not the optimal saving strategy and other factor should be considered as well when searching for optimal predefined saving strategy.

In Ekonomické rozhľady : vedecký časopis Ekonomickej univerzity v Bratislave : scientific journal of the University of Economics Bratislava. -- Bratislava : Ekonomická univerzita, 2021. -- ISSN 0323-262X. -- ISSN 2644-7185. -- Roč. 50, č. 1 (2021), s. 5-22