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2021/2022  KAN-CCMVV5101U  The Danish pension system: One of the best in the world - design, performance and challenges

English Title
The Danish pension system: One of the best in the world - design, performance and challenges

Kursusinformation
Sprog Dansk
Kursets ECTS 7,5 ECTS
Type Valgfag
Niveau Kandidat
Varighed Et quarter
Starttidspunkt Tredje quarter
Tidspunkt Skemaet bliver offentliggjort på calendar.cbs.dk
Studienævn
Studienævnet for cand. merc.
Kursusansvarlig
  • Henrik Ramlau-Hansen - Institut for Finansiering (FI)
Primære fagområder
  • Finansiering/Finance
  • Statistik og kvantitative metoder/Statistics and quantitative methods
  • Økonomi/Economics
Undervisningsformer
  • Tilstedeværelsesundervisning
Sidst opdateret den 19-08-2021

Relevante links
Læringsmål
Following the course, the student should achieve a thorough understanding of the structure of the Danish pension system and how the various parts interact. Also, the students should after the course
  • understand the structure of the market, the pension companies, their investment strategies and returns,
  • understand the construction of pension products and how these have developed over time, including the impact of mortality and longevity on pension planning,
  • understand the role and special situation of ATP,
  • understand the structure of pension forecasts and associated financial risks,
  • have gained a general understanding of the regulatory system, including the role of the Danish Financial Supervisory Authority,
  • understand the impact of pension savings on household finance including the implications for macroeconomic and financial stability.
  • Also, through the course various financial, economic and statistical methods and models will be applied, such that the student should be able to, among other things,
  • apply the theoretical literature on pension plan designs on how to address the main objectives of pension systems,
  • apply and develop financial models for forecasting pension savings,
  • build statistical models for estimation of mortality and longevity, and
  • apply financial theory to estimate optimal consumption and investment decisions during a life time.
Forudsætninger for at deltage i kurset
The course is especially suitable for students considering entering a career in insurance, pension, asset management or another financial institution.

Undergraduate courses in economics, statistics, mathematics and investment theory, or some similar background.
Prøve/delprøver
The Danish Pension System: One of the best in the World - Design, Performance and Challenges:
Prøvens ECTS 7,5
Prøveform Mundtlig prøve på baggrund af skriftligt produkt

Det er en forudsætning for at deltage i den mundtlige prøve, at det skriftlige produkt er afleveret inden afholdelse af prøven; inden for fastsat frist. Karakteren gives på baggrund af en helhedsbedømmelse af det skriftlige produkt og den individuelle mundtlige præstation, jf. også studieordningens regler om prøveformer.
Individuel eller gruppeprøve Gruppeopgave med mundtligt forsvar i grupper
Antal personer i gruppen 2-4
Omfang af skriftligt produkt Max. 15 sider
Opgavetype Essay
Varighed
Skriftligt produkt afleveres på en fastsat dato og tidspunkt.
15 min. pr. studerende, inkl. votering, karaktergivning og begrundelse
Bedømmelsesform 7-trins-skala
Bedømmer(e) Eksaminator og ekstern censor
Eksamensperiode Forår
Syge-/omprøve
Samme prøveform som ved ordinær prøve
Kursets indhold, forløb og pædagogik

An introduction to the Danish pension system including what constitutes a good pension system.

Key elements of the Danish pension system: Public pensions, ATP, occupational pension schemes (OPS) and additional savings. Also major market players, size of market, replacement rates and tax rules are covered.

Pension plan designs including impact of economic growth, inflation and returns. Examples of specific pension plans and the design, including various types of risk products (death, disability, critical illness) and savings products (endowments, pure annuities and life-long annuities). Policies with bonus and the shift towards market-based products. Optimal pension fund design and life-cycle savings.

Asset allocation, investment policies and return on investments. This section also includes alternative investments, ESG investments and pension projections.

Regulation, supervision and governance of pension companies. Regulation of investments (prudent person principle) and liabilities.

The impact of longevity on pension systems. Estimation of mortality rates and longevity. The impact of socio-economic groups and mortality forecasting.

Pension savings and macroeconomic stability. The impact of pension savings on household finance including the implications for macroeconomic and financial stability. Increasing pension wealth is associated with higher debt levels.

Public finances and interplay between public/private pensions and fiscal sustainability.

Finally, why is the Danish pension system considered among the best in the world? And, will it continue to be so?
Beskrivelse af undervisningsformer
The course is based on lectures including class discussions and some problem solving. Students are expected to be prepared for class and to participate actively in the discussions. Guest lecturers will also be part of the course.
Feedback i undervisningen
Feedback is provided during class discussions, exercises and through office hours. Also, a mock up exam example will be discussed and graded individually during the course.
Studenterarbejdstimer
Class hours 33 timer
Exam 25 timer
Preparation for classes 132 timer
Foreløbig litteratur

The course will be based on draft chapters from the forthcoming book The Danish Pension System: Design, Performance, and Challenges, to be published by Oxford University Press in 2022, and edited by Torben M. Andersen, Professor, Department of Economics and Business Economics, Aarhus University, Svend E. Hougaard Jensen, Professor, Department of Economics, Copenhagen Business School, Denmark and Jesper Rangvid, Professor Department of Finance, Copenhagen Business School, Denmark. Some of the articles referenced in the book will also be discussed.

 

In addition, slides and other background material will be provided.
Sidst opdateret den 19-08-2021