@techreport{61fbd98d2e85461f9b8b79d65f77ffde,
title = "How people react to pension risk",
abstract = "We show that people exposed to greater pension risk are less likely to invest in risky assets. We exploit a reform that links people's future pension benefits to their pension funds' funding ratio—a measure of the fund's financial health—making funding ratios a fund-specific measure of pension risk. The effect of pension risk is stronger for people who are better informed about their pensions, for retirees and pension-age non-retirees, and for wealthier people. The funding ratio does not affect investments in a pre-reform period, nor does it affect bequest intentions, (expected) retirement, or the motivations for saving. ",
keywords = "individual portfolio choice, background risk, retirement planning, pension reform, The Netherlands",
author = "{Salamanca Acosta}, Nicolas and {de Grip}, Andries and Olaf Sleijpen",
year = "2020",
language = "English",
series = "IZA Discussion Paper Series",
publisher = "IZA",
number = "13077",
type = "WorkingPaper",
institution = "IZA",
}