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Pension scheme fees and charge ratios in 44 countries: A comparative study
Author(s) -
Han Taejin,
Stańko Dariusz
Publication year - 2020
Publication title -
international social security review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.349
H-Index - 28
eISSN - 1468-246X
pISSN - 0020-871X
DOI - 10.1111/issr.12229
Subject(s) - pension , business , cluster (spacecraft) , actuarial science , charge (physics) , key (lock) , pension system , finance , labour economics , economics , computer science , computer security , physics , quantum mechanics , programming language
Based on data received from pension supervisory authorities, the article reviews 85 different pension schemes in 44 jurisdictions by looking at fees and charges as well as their legal ceilings and their development since 2014. A key finding is the observed decrease in fees and caps. The article presents jurisdictions according to clusters, i.e. by groups of countries with identical or very similar items already covered by pension fees, and analyses the extent to which various cost and fee elements are covered by fees charged to members. Finally, we calculate charge ratios for each cluster to quantify the impact of fees and charges on pension savings. Occupational defined contribution pension schemes and personal plans linked to employment tend to be much more cost effective than personal schemes that have no direct employment link.