Friday 30 November 2018 12:15 - 13:15
This talk will introduce a new pension contract that protects customers from adverse asset price movements, while keeping the potential of positive returns. It has a transparent structure and clear distribution rule, which can be easily understood by the customer. By comparing with other pensions contracts under a behavioural model (the Cumulative Prospect Theory), we show that this new contract can be the optimal choice for customers.