4408115: Pension Finance

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Semester:WS 17/18
Scheduled in semester:3
Semester Hours per Week / Contact Hours:28.0 L / 21.0 h
Self-directed study time:69.0 h

Module coordination/Lecturers


Master's degree programme in Finance (01.09.2015)


Life-Cycle View of Personal Finance
Defined Benefit vs. Defined Contribution Plans
Instruments Typically Used in Pension Finance
Models for Integrating Financial Risks with Other Risks like Longevity Risk

Lecture Goals

After completing this module, students have gained a solid background in financial decisions regarding longevity and retirement. They know how to combine valuation techniques from finance with those from actuarial mathematics, and understand the effects of longevity, bequest motive, and risk-return tradeoff on the corresponding choices made by individual investors.

Learning Outcomes

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


Lectures Method

Interactive lecture with exercises

Admission Requirements

It is recommended to have successfully completed the module Financial Economics and Markets before enrolling in the course Pension Finance.


Milevsky, Moshe A.: "The Calculus of Retirement Income", Cambridge University Press, 2006.

Exam Modalities

Written final exam, 60 min.


Grading will be based entirely on the final exam.


13.10.201709:00 - 12:15H4
31.10.201713:15 - 16:30H5 (Fabrikweg)
14.11.201713:15 - 16:30H5 (Fabrikweg)
16.11.201713:15 - 16:30S2
23.11.201709:00 - 12:15H5 (Fabrikweg)
28.11.201709:00 - 12:15S3
30.11.201709:00 - 12:15H5 (Fabrikweg)


  • PWW-MA_Pension Finance (WS 17/18, bewertet)
  • PWW-MA_Pension Finance (SS 18, bewertet)