TY  - RPRT
        AU  - Salamanca, Nicolás
AU  - Grip, Andries de
AU  - Sleijpen, Olaf
        TI  - How People React to Pension Risk
        PY  - 2020/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13077
        UR  - https://www.iza.org/publications/dp13077
        AB  - 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.
        KW  - individual portfolio choice
KW  - background risk
KW  - retirement planning
KW  - pension reform
KW  - The Netherlands
        ER  -