5608114: C20 Pension Finance

Description

• Modelling the Human Life Cycle
• Models of Human Mortality
• Valuation Models of Deterministic Interest
• Models of Risky Financial Investments
• Models of Pension Life Annuities
• Models of Life Insurance
• Models of DB vs. DC Pensions
• Sustainable Spending at Retirement
• The Liechtenstein Pension System

Learning Outcomes

Students …

• have a solid background in financial decisions regarding longevity and retirement,
• combine valuation techniques from finance with those from actuarial mathematics,
• understand the effects of longevity, bequest motive, and risk-return trade-off on the corresponding choices made by individual investors,
• understand and apply life-cycle models of individual investors,
• distinguish between DB and DC pension plans and understand their respective implications,
• combine financial models with models for longevity risk,
• select appropriate financial instruments for individual pension planning and justify this selection economically,
• understand the Liechtenstein pension system and can compare it to systems in other countries.

Lectures Method

Lecture

Literature

Milevsky, M.A. (2006). The Calculus of Retirement Income. Cambridge University Press