Netherlands paper explores people’s trust in pension funds
Most workers opt for flat-rate annuity arrangements, but there are some deviations, authors find
Workers who expect declining expenses during retirement tend to choose different pension products, a working paper published by the Netherlands Bank says.
Carin van der Cruijsen and Nicole Jonker's paper studies how people's expectations about expenses during retirement and trust in pension funds influence their preferences for different pension arrangements.
The authors find most workers prefer a flat-rate annuity, but there are those who "deviate" and prefer an alternative option: "One of the
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