{"title":"了解市场风险对新养老金制度和政府责任的影响","authors":"Sourish Das, Bikramaditya Datta, Shiv Ratan Tiwari","doi":"arxiv-2408.13200","DOIUrl":null,"url":null,"abstract":"This study examines how market risks impact the sustainability and\nperformance of the New Pension System (NPS). NPS relies on defined\ncontributions from both employees and employers to build a corpus during the\nemployee's service period. Upon retirement, employees use the corpus fund to\nsustain their livelihood. A critical concern for individuals is whether the\ncorpus will grow sufficiently to be sustainable or if it will deplete, leaving\nthem financially vulnerable at an advanced age. We explore the impact of market\nrisks on the performance of the corpus resulting from the NPS. To address this,\nwe quantify market risks using Monte Carlo simulations with historical data to\nmodel their impact on NPS. We quantify the risk of pension corpus being\ninsufficient and the cost to the Government to hedge the risk arising from\nguaranteeing the pension.","PeriodicalId":501273,"journal":{"name":"arXiv - ECON - General Economics","volume":"13 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2024-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Understanding the Effect of Market Risks on New Pension System and Government Responsibility\",\"authors\":\"Sourish Das, Bikramaditya Datta, Shiv Ratan Tiwari\",\"doi\":\"arxiv-2408.13200\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"This study examines how market risks impact the sustainability and\\nperformance of the New Pension System (NPS). NPS relies on defined\\ncontributions from both employees and employers to build a corpus during the\\nemployee's service period. Upon retirement, employees use the corpus fund to\\nsustain their livelihood. A critical concern for individuals is whether the\\ncorpus will grow sufficiently to be sustainable or if it will deplete, leaving\\nthem financially vulnerable at an advanced age. We explore the impact of market\\nrisks on the performance of the corpus resulting from the NPS. To address this,\\nwe quantify market risks using Monte Carlo simulations with historical data to\\nmodel their impact on NPS. We quantify the risk of pension corpus being\\ninsufficient and the cost to the Government to hedge the risk arising from\\nguaranteeing the pension.\",\"PeriodicalId\":501273,\"journal\":{\"name\":\"arXiv - ECON - General Economics\",\"volume\":\"13 1\",\"pages\":\"\"},\"PeriodicalIF\":0.0000,\"publicationDate\":\"2024-08-23\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"arXiv - ECON - General Economics\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/arxiv-2408.13200\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"\",\"JCRName\":\"\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"arXiv - ECON - General Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/arxiv-2408.13200","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
Understanding the Effect of Market Risks on New Pension System and Government Responsibility
This study examines how market risks impact the sustainability and
performance of the New Pension System (NPS). NPS relies on defined
contributions from both employees and employers to build a corpus during the
employee's service period. Upon retirement, employees use the corpus fund to
sustain their livelihood. A critical concern for individuals is whether the
corpus will grow sufficiently to be sustainable or if it will deplete, leaving
them financially vulnerable at an advanced age. We explore the impact of market
risks on the performance of the corpus resulting from the NPS. To address this,
we quantify market risks using Monte Carlo simulations with historical data to
model their impact on NPS. We quantify the risk of pension corpus being
insufficient and the cost to the Government to hedge the risk arising from
guaranteeing the pension.