Comparison of Costs & Fees in Countries with Private Defined Contribution Pension Systems

International Organization of Pension Supervisors Working Paper No. 6

38 Pages Posted: 16 Apr 2011

See all articles by Fiona Stewart

Fiona Stewart

Organization for Economic Co-Operation and Development (OECD)

Denise Gómez Hernández

Universidad Autónoma de Querétaro (UAQ)

Date Written: June 1, 2008

Abstract

The fees and charges imposed upon pension funds are of great interest and importance to pension supervisory authorities as they have a significant impact on the amount of retirement income delivered to individuals, particular in the case of defined contribution (DC) pension schemes. Yet administrative fees are charged for services in different ways, with the diversity of charges and the specific details involved in each case making it impossible to directly compare administrative charges nationally and internationally. This paper therefore attempts to model such charges on a unified basis to allow for a standardized international comparison, known as the charge ratio. Explanations for the difference in charge ratios between countries are then proposed.

Keywords: Charge Ratios, Defined Contribution Pension Systems, Equivalent Fees

JEL Classification: G23, G32

Suggested Citation

Stewart, Fiona and Gomez Hernandez, Denise, Comparison of Costs & Fees in Countries with Private Defined Contribution Pension Systems (June 1, 2008). International Organization of Pension Supervisors Working Paper No. 6, Available at SSRN: https://ssrn.com/abstract=1809830 or http://dx.doi.org/10.2139/ssrn.1809830

Fiona Stewart (Contact Author)

Organization for Economic Co-Operation and Development (OECD) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Denise Gomez Hernandez

Universidad Autónoma de Querétaro (UAQ) ( email )

Cerro de las Campanas S/N, Las Campanas
Queretaro, 76010
Mexico

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