New Challenges in Pension Industry: Proposals of Personal Pension Products

Within the current post-crisis economic environment, char- acterized by low growth and low interest rates, retirement and long-term saving represent a crucial challenge. Furthemore, the expansion of life expectancies modifies the demand of pension products and insurers and pension providers have to guarantee the sustainability and competitive- ness of their products, in spite of the economic stagnation. Within the context of the personal pension products, in the paper we propose a new contract with profit participation, which consists in a deferred life annuity with variable benefits changing according with two dynamic financial elements: the periodic financial result of the invested fund year by year and the first order financial technical base checked at the beginning of predefined intervals all along the contract life. A numerical implementation explains the forecasted trend of the inflows and outflows connected to the contract under financial and demographic stochastic assumptions