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Discrete Dynamics in Nature and Society
Volume 2014 (2014), Article ID 576213, 7 pages
http://dx.doi.org/10.1155/2014/576213
Research Article

Optimization of the Actuarial Model of Defined Contribution Pension Plan

1School of Insurance and Economics, University of International Business and Economics, Beijing 100029, China
2School of Information Engineering, Tianjin University of Commerce, Tianjin 300134, China

Received 17 March 2014; Accepted 20 May 2014; Published 12 June 2014

Academic Editor: Xiaochen Sun

Copyright © 2014 Yan Li et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The paper focuses on the actuarial models of defined contribution pension plan. Through assumptions and calculations, the expected replacement ratios of three different defined contribution pension plans are compared. Specially, more significant considerable factors are put forward in the further cost and risk analyses. In order to get an assessment of current status, the paper finds a relationship between the replacement ratio and the pension investment rate using econometrics method. Based on an appropriate investment rate of 6%, an expected replacement ratio of 20% is reached.