Under the new pension agreement, pension funds must assess the appropriate investment risk for various age groups, depending on their ability to bear risk in addition to their risk preferences. Standard life-course investment profiles, where risk decreases as individuals age, assume constant income. These profiles do not consider the substantial differences that may exist in the uncertainty in the labour market relative to the income stream. For example, some households may be exposed to unemployment or disability for much longer than other households.

In order to determine risk capacity, this project aims to accurately measure the labour market insecurity during the life cycle of different groups (gender, position relative to the income distribution and sector), with a specific focus on health as a source of uncertainty, and to understand the impact of this on optimal investment profiles, as well as the adequacy of the pension.

The project is a continuation of the Netspar project “Uncertainty over the lifecycle: implications for pensions and savings behaviour.” The theme is also in line with the 'Dynamics of Risk Attitudes' project, which focuses on risk preferences.

This project falls under Netspar. CLICKNL is partnering with Netspar in the field of research, which is financed from the Public Private Partnership scheme of the Netherlands Enterprise Agency. Netspar, Network for Studies on Pensions, Aging and Retirement is an independent knowledge network. They focus on the economic and social consequences of pensions, aging and ‘old age’ in the Netherlands.

Discover the knowledge network NETSPAR (Network for Studies on Pensions, Aging and Retirement) here.