1. This article examines the trade-off between contributions and benefits in different pension arrangements.
2. Stochastic simulations are used to evaluate the risk sharing characteristics of a private pension plan from the perspective of the plan member.
3. Hybrid plans (those in between traditional DB and individual DC) appear to be more efficient and sustainable forms of risk sharing than either of the other two, with conditional indexation plans having the greatest potential as sustainable forms of risk sharing.
The article is written by an expert in the field, providing a detailed analysis of different pension arrangements and their associated risks. The author provides evidence for their claims through stochastic simulations, which adds credibility to their argument. The article does not appear to have any biases or one-sided reporting, as it presents both sides equally and explores counterarguments. Furthermore, there is no promotional content or partiality present in the article, as it focuses solely on providing an objective analysis of different pension arrangements. Additionally, possible risks are noted throughout the article, ensuring that readers are aware of any potential issues they may face when considering these options. In conclusion, this article appears to be trustworthy and reliable due to its comprehensive analysis and lack of bias or promotional content.