A Proposal for Members Choice under Labor Pension New Scheme
碩士 === 國立臺灣大學 === 財務金融學研究所 === 100 === Labor Pension New Scheme provides another source of pension for the labor force. With the rise in the average life expectancy, population aging, rising health care needs and inflation, labor force will face the problem of inadequate income replacement rate afte...
| Main Authors: | , |
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2012
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| Online Access: | http://ndltd.ncl.edu.tw/handle/18238408722385105955 |
| Summary: | 碩士 === 國立臺灣大學 === 財務金融學研究所 === 100 === Labor Pension New Scheme provides another source of pension for the labor force. With the rise in the average life expectancy, population aging, rising health care needs and inflation, labor force will face the problem of inadequate income replacement rate after retirement. Government manages the pension fund and guarantees the minimum investment rate, biennium deposit rate. National Treasury takes the responsibility to cover the shortage between biennium deposit rate and the real investment rate. The proposal for members’ choice enables employee to choose their portfolio but investor behavior such as inertia, procrastination and overconfidence would seriously damage the accumulation of pension assets. The investment platform should be well-designed and life-cycle fund is the best design for default fund. There will be two annuity insurance products to hedge the longevity risk after retirement. Members could use their contribution to purchase installment-premium annuity before retirement or they can use their pension to purchase single-premium annuity at the point of retirement. Government should cooperate with private financial institution to continuously promote the concept of pension management.
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