Guest Speaker:
Mr. David McCarthy, PhD Student, The Wharton School, University of Pennsylvania
Topic:
Asset Rich and Cash Poor in Singapore? Retirement Provision in a National Defined Contribution Pension Fund.
Chairman:
Prof. Augustine H H Tan, Deputy Director, Wharton-SMU Research Center
Venue:
Conference Room, 11 Evans Road, Singapore 259368
Date:
Thursday, 11 January 2001, at 4.30 pm
Reservation:
Places are limited. Please confirm your attendance by Wednesday, 10 January, 12 pm with Lim Lih Yeng at lylim@smu.edu.sg or telephone: 822 0197.
About the seminar:
National defined contribution pension systems have long been a mainstay of retirement income in Asia. One of the oldest and best-known of these systems is the Singaporean Central Provident Fund, a mandatory retirement scheme managed by the central government for almost a half-century. With required contribution rates that is up to 50%, this program powerfully shapes asset accumulation patterns and retirement portfolios.
In this paper we explore how the structure and design of the Singaporean retirement system influences retirement wealth levels and portfolio mix. Further, we assess how well future retirees may be protected against retirement risk under such a system. Our model indicates that outcomes rest critically on the interlinked national retirement scheme and housing program. We show that policies to enhance one program may boost retirement replacement rates but can also lower total wealth in unexpected ways. The lessons we draw may serve as guidance for other countries constructing a national defined contribution retirement system.
About the speaker:
David McCarthy: Currently enrolled in a PhD program in Insurance and Risk Management at the Wharton School of the University of Pennsylvania. Scheduled to graduate in 2002.
Graduate degree: Bachelor of Science (Honours) in Mathematical Statistics, University of the Witwatersrand, Johannesburg, South Africa, 1995.
Undergraduate degree: Bachelor of Economic Science, with majors in Actuarial Science and Mathematical Statistics, University of the Witwatersrand, Johannesburg, South Africa.
Professional education: Qualified as a Fellow of the Faculty of Actuaries in Edinburgh (UK) in 2000.
Research interest: Economic security and Retirement provision in an international context; mortality patterns in developed and developing countries; theory of pension fund valuation.
of the Faculty of Actuaries in Edinburgh (UK) in 2000.
Research interest: Economic security and Retirement provision in an international context; mortality patterns in developed and developing countries; theory of pension fund valuation.
