scholarly journals Strategies in Retirement Fund Selection in the Mexican Retirement Market 1997-2018

2021 ◽  
Vol 16 (TNEA) ◽  
pp. 1-16
Author(s):  
Luis Raúl Rodríguez-Reyes ◽  
Ángel Samaniego ◽  
Mireya Pasillas
Keyword(s):  
Retirement Savings ◽  
Investment Strategies ◽  
Replacement Rate ◽  
Market Prices ◽  
Average Return ◽  
Retirement Fund ◽  
Individual Decisions ◽  
Retirement Funds ◽  
Rolling Windows

Objective: This research studies individual investment strategies that can be employed by Mexican workers to choose a retirement savings company, to provide evidence that can guide workers and governments in their pursuit for a higher replacement rate. Methods: To accomplish such task, more than 200,000 individual decisions in rolling-windows are simulated, based on more than twenty-years of market prices on retirement funds in Mexico (1997-2018). Outcome: Results indicate that contrarian-based strategies dominate momentum-based strategies in three out of four categories of funds. Recommendations: Moreover, in two out of four categories of funds the highest return is reached by the system’s average, calling for the introduction of an ETF-type of product to the Mexican financial market. Originality: The novelty of this research resides in the perspective of the analysis, positioning the Mexican worker in the role of an investor making a financial choice. Conclusions: The maximum average return is the best way to select a retirement fund manager when there is a guaranteed minimum pension, which acts as a risk-hedge, as it is in the Mexican case.

scholarly journals Savings for retirement and the millennial generation in Mexico: perception about the importance of having a retirement fund

2021 ◽  
Vol 1 (1) ◽  
pp. 245-260
Author(s):  
Teresa Zamora Lobato
Keyword(s):  
Millennial Generation ◽  
National Commission ◽  
Retirement Savings ◽  
Snowball Sampling ◽  
Financial Capability ◽  
Chi Square ◽  
Retirement Pension ◽  
Retirement Fund ◽  
Retirement Funds ◽  
Taking Action

The aim of this study focused on knowing the existing relation between Savings, Financial Capability, Future forecast and Retirement funds in relation to gender, which allows to determine the Savings culture, while also proving if there is a relationship between Savings, Financial Capability, Future forecast and Retirement funds in relation to gender among the population known as Millennial generation. The study is non-experimental, approached from the hypothetic-deductive paradigm, it is descriptive and correlational, as well as transversally cut. The participants were 89 Millennials(73% women and 27% men), whoseagesranged between 18 to 35 years old. The sample was non-probabilistic by auto-determination, since the technique used was “snowball sampling”, which consisted on sharing the instrument through social networks. For the study, the survey designed by the Mexican National Commission of Retirement Savings System (2017) was used. For the data capture and analysis, the program SPSS Statistics v23 was used and the measurement technique was Pearson s Chi square with df and sig <0.05. The main results show how young millennials have not thought about retirement or at least, they are currently not taking action on this issue, hence, they have not decided to save money for the future at the moment.Regarding the parametricresults, it was determined that thereis no relationship between what millennials perceive about keeping a record of monthly income and expenses, what they would do in case they received an unexpected sum of money, receive a monthly pension, the retirement age, amount of the retirement pension and the knowledge of what a retirement fund is with the variable gender.

scholarly journals An analysis of the Dutch-style pension plans proposed by UK policy-makers

2021 ◽  
pp. 1-21
Author(s):  
IQBAL OWADALLY ◽  
RAHIL RAM ◽  
LUCA REGIS
Keyword(s):  
Risk Sharing ◽  
Pension Plans ◽  
Retirement Savings ◽  
Investment Strategies ◽  
Defined Contribution ◽  
Replacement Rate ◽  
Policy Makers ◽  
Pension Schemes ◽  
Simulation Based ◽  
The Uk

Abstract Collective Defined Contribution (CDC) pension schemes are a variant of collective pension plans that are present in many countries and especially common in the Netherlands. CDC schemes are based on the pooled management of the retirement savings of all members, thereby incorporating inter-generational risk-sharing features. Employers are not subject to investment and longevity risks as these are transferred to plan members collectively. In this paper, we discuss policy related to the proposed introduction of CDC schemes to the UK. By means of a simulation-based study, we compare the performance of CDC schemes vis-à-vis typical Defined Contribution schemes under different investment strategies. We find that CDC schemes may provide retirees with a higher income replacement rate on average, together with less uncertainty.

scholarly journals The role of Perceived Behavioural Control as mediator on financial incentives towards saving in a voluntary retirement fund

2019 ◽  
Vol 5 (1) ◽  
pp. 144
Author(s):  
Mohamad Fazli Sabri ◽  
Radduan Yusof ◽  
Husniyah Abd. Rahim ◽  
Zuroni Md. Jusoh
Keyword(s):  
Financial Incentives ◽  
Tax Incentives ◽  
Sampling Procedure ◽  
Behavioural Control ◽  
Cluster Sampling ◽  
Retirement Savings ◽  
Perceived Behavioural Control ◽  
Retirement Fund ◽  
The Relationship

The purpose of the mediation analysis is to investigate how perceived behavioural control mediates the relationship between the cash and tax incentives towards the intention to save in a voluntary retirement fund. A quantitative approach was adopted analysing 384 responses collected through a nationwide multistage proportionate cluster sampling. A nonparametric sampling procedure using bootstrapping following the Preacher and Hayes technique in mediating analysis were employed. The specific indirect effect from the bootstrapping result concluded that tax incentives influence the saving intention via perceived behavioural control, in contrast to cash incentives which is not significant. Predicting a person’s intention to save in a voluntary retirement fund is an important issue, and the findings of this study would have practical implications on policymakers and commercial marketers alike, as it would help to encourage retirement savings through voluntary funds to prevent financial insufficiency in the golden age.

Selecting Railway Investments in 1890s America

2017 ◽  
Vol 44 (1) ◽  
pp. 77-93
Author(s):  
Joel E. Thompson
Keyword(s):  
Financial Reporting ◽  
Accounting Information ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Investment Strategies ◽  
Financial Accounting Standards Board ◽  
Accounting Data ◽  
Rational Decisions

ABSTRACT The purpose of financial reporting is to provide information to investors and creditors to help them make rational decisions (Financial Accounting Standards Board [FASB] 2010). Tracing the development of investors' methods should help with understanding the role of financial accounting. This study examines investment practices involving railways in 1890s America. As such, it furthers our knowledge about the development of investment methods and their necessary information. Moreover, it shows that as investment methods grew in sophistication, there was an enhanced demand for greater comparability in accounting data to make meaningful analyses. Competing investment strategies, largely devoid of accounting information, are also discussed.

Role of Potential Gain and Loss in Choice-Dilemma Decisions

1979 ◽  
Vol 49 (2) ◽  
pp. 617-618
Author(s):  
Richard St. Jean
Keyword(s):  
Potential Gain ◽  
Gain And Loss ◽  
Individual Decisions

The effects of potential gain and loss on choice-dilemma decisions were assessed by experimentally manipulating the content of four choice-dilemma items. Results indicated that the loss manipulation had a major impact on both individual decisions and group shifts, but the gain manipulation did not.

scholarly journals A comparison of retirement saving using discretionary investment and Regulation 28

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Gizelle D. Willows ◽  
Thomas Burgers ◽  
Darron West
Keyword(s):  
South Africa ◽  
South African ◽  
Asset Allocation ◽  
Pension Funds ◽  
Investment Risk ◽  
Retirement Savings ◽  
Primary Reason ◽  
Risk And Return ◽  
Retirement Saving ◽  
Retirement Fund

Background: There is growing uncertainty in global society with regard to how retirement savings should be approached. The primary reason for this is that most societies do not save enough and their citizens run out of money during retirement. Aim: This study investigates whether the limitations imposed by Regulation 28 of the Pension Funds Act of South Africa encourage optimal asset allocation and reduce investment risk for retirement savings when contrasted with discretionary investment. Setting: The study looks at hypothetical individuals who are subject to tax and retirement consequences as administered by South African legislation. Methods: A quantitative risk and return analysis was performed while considering two hypothetical investors who are identical in all aspects other than their choice of investments. Results: The findings indicate that Regulation 28 is effective in reducing the investment risk of retirement savings; however, it may also force the investor to sacrifice wealth. Conclusion: Depending on the tax bracket in which the investor sits, discretionary investment may be preferential to investing in a retirement fund under the mandate of Regulation 28.

scholarly journals Measuring retirement savings adequacy: developing a multi-pillar approach in the Netherlands

2014 ◽  
Vol 15 (1) ◽  
pp. 55-89 ◽  
Author(s):  
MARIKE KNOEF ◽  
JIM BEEN ◽  
ROB ALESSIE ◽  
KOEN CAMINADA ◽  
KEES GOUDSWAARD ◽  
...  
Keyword(s):  
Pension System ◽  
Vulnerable Groups ◽  
Median Income ◽  
Retirement Savings ◽  
Housing Wealth ◽  
Replacement Rate ◽  
Data Set ◽  
Public And Private ◽  
Private Savings ◽  
The Uk

AbstractThe Dutch pension system is highly ranked on adequacy. These rankings, however, are based on fictitious replacement rates for median income earners. This paper investigates whether the Dutch pension adequacy is still high when we take into account the resources that people really accumulate, using a large administrative data set. A comprehensive approach is followed: not only public and private pension rights, but also private savings and housing wealth are taken into account. Summed over all age- and socioeconomic groups we find a median gross replacement rate of 83% and a net replacement rate of 101%. At retirement age, 31% of all households face a gross replacement rate that is lower than 70% of current income. Public and occupational pensions each account for more than 35% of total pension annuities. Private non-housing assets account for 14% and imputed rental income from net housing wealth accounts for about 10%. Some vulnerable groups, such as the self-employed, have below average replacement rates. Results are fairly similar to results found in the UK, indicating that we should be careful in evaluating the adequacy of pensions systems on the basis of fictitious replacement rates.

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