Since 2014
Analysis of Switch Option under New Labor Pension Plan
Journal of Financial Studies
View Archive Info| Field | Value | |
| Title |
Analysis of Switch Option under New Labor Pension Plan
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| Creator |
Jennifer L. Wang
Sharon S. Yang H.C. Huang Yung-Tsung Lee |
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| Description |
Recent pension reform in Taiwan has changed our Labor Pension Plan from defined benefit plan into defined contribution plan. To mitigate the risks under defined contribution plan, this paper develops a theoretical framework to analyze the switch option design between Individual Retirement Account and Annuity Insurance Plan under new Labor Pension Plan. We estimate the optimal timing to exercise the switch option and calculate the increase in the retirement wealth after employees switch their pension plan choice. Our research results show if employees were to exercise the switch option optimally, the switch option design could help to increase the retirement wealth and decrease investment risk under new Labor Pension Plan. Key words: Labor Pension Plan, defined benefit plan, defined contribution, Individual Retirement Account, Annuity Insurance Plan, option |
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| Publisher |
Journal of Financial Studies
財務金èžå¸åˆŠ |
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| Date |
2011-07-06
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| Type |
—
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| Format |
application/pdf
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| Identifier |
http://www.jfs.org.tw/index.php/jfs/article/view/2011227
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| Source |
Journal of Financial Studies; Vol 15, No 1 (2007); 1
財務金èžå¸åˆŠ; Vol 15, No 1 (2007); 1 |
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| Language |
—
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