Pensions in Belgium are based on three pillars: the state pension (pillar
I), the supplementary work-related pension (pillar II), and the individual
pension products (pillar III). The OECD pension outlook (OECD, 2018)
calls for action to deal with the declining trend in the ratio between the
retirement income (i.e., the sum of pillar I, II and III pensions) and the
employment income at the time of retirement. Indeed, due to steadily
increasing life expectations, an aging population, adverse budgetary
conditions, and low interest rates, a trend reversal cannot be readily
In this challenging environment, it is of utmost importance to have a
pension savings system that is as efficient as possible, an objective that
was also confirmed in a series of meetings that we held with a broad
range of stakeholders. This project contributes to a higher efficiency in
pillar II and III in four ways.
First, we develop the management tools for annuities, tontines, and
reverse mortgages that make it possible to offer retirees more flexible
products in terms of choice of cash flows (e.g., receiving more in states
of ill health).
Second, we create an optimal life-cycle investment decision framework
that makes it possible to match as close as possible the desired pension
income with the predicted pension income from actual pension savings.
Third, we use pension savings data and field studies to learn about
people’s actual life-cycle behaviour. We determine how large the
inefficiencies are and what actions employers, advisors and policy
makers can take to influence the intentions and actions of individuals in
ways that nudge them toward more efficient decision making.
Fourth, we provide recommendations to facilitate the introduction of
novel retirement products. In order to help pension savers in making
efficient pension savings decisions we develop a digital platform,
PensionMaps, to guide them through these decisions.
Effective start/end date1/10/2030/09/24

    Flemish discipline codes

  • Business management

    Research areas

  • pension

ID: 52918925