Document Type : Original Research Paper
Author
Department of Financial Management, School of Islamic Studies and Management, Imam Sadiq University (AS), Tehran, Iran
Abstract
Pension systems are among the most important means of responding to the responsibility of providing and guaranteeing the minimum standard of living for the elderly. Therefore, with the aim of providing some kind of security to guarantee the minimum standard of living of the people, the governments have obliged themselves to formulate the design of pension funds. This is despite the fact that in recent years, government pension schemes have faced huge challenges in most parts of the world. These plans, which often provide coverage of certain benefits, have created major debts for the governments and therefore have made thinkers think about reforming the pension systems. One of the suitable alternatives used in the world is the use of combined private pension plans. These plans are more efficient due to their special features such as good governance, competitiveness and the possibility of risk-based monitoring. The current research deals with the financial feasibility of implementing these plans. For this reason, by using the fuzzy mapping method, the effective factors on the stability of combined retirement plans were calculated and the effect of each factor was determined. Then, using system dynamics methodology, the research model was simulated and tested. The twenty-year simulation results indicate the unsustainability of plans with defined benefits, while in combined pension plans, the net cash flow of the plan during the studied years was not only negative, but also had an increasing trend.
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