Private pension plans are different in several respects from the policy of optimal risk sharing plans. The economic environment is different with pension funds and are much riskier and having more dynamic nature than conventional pension funds investment. Therefore, the retirement contracts that work well in practice might be able to deviate from the optimal contracts in pension funds. (more…)

Defined benefit pension plans are retirement plans that are largely funded by employers and benefits are based on employee years of service, employee age and earnings. This type of pension plan has been declining in popularity, largely because the risk is mostly borne by the employer rather than the employee.

Contributions are largely made by the employer – for some employees this is definitely a pro, since the employer determines how much of a contribution is made and there are no caps on the total amount an employer can make to the plan annually. (more…)

Some early retirement survey focused almost exclusively on men when making retirement decision. Until recently, woman may have some decisiveness which affected retirement decision for her and her husband. Recognition of the difference point of view add some complexity on making retirement decision. Off course, the retirement decision is varied beyond gender and economic issues. Substantial differences in health condition, employment market, family finance situation, and care giving responsibility can lead to the differences timing of retirement. (more…)