A pension fund must have insight into the extent to which participants can and want to run risks in the management of their pension. The purpose of our case is to translate the results of a risk preference study into a risk appetite. By using calculations, the most suitable lifecycle that provides the highest benefit for an entire pension fund population will be estimated, i.e. for the different ages as well as for the different risk aversions.
In addition, you will need to think about issues such as whether you want to lift the loan restrictions and therefore want to invest more than 100% for young people, and if so, how much?
At the end you will present your findings to this hypothetical pension fund.
Good Luck!
This case will be presented in English and is open for Ba3 and higher.