Abstract
This cumulative dissertation consists of three essays that empirically investigate responses to contribution structure design, behavioral differences among saver segments and the effects of plan design and benefit adjustment mechanisms on retirement benefits and pension fund solvency in private pension plans. Chapter 2 examines the impact of compulsory employer and employee contribution rates on voluntary contributions, using data from an Italian occupational pension fund. The analysis reveals asymmetric responses to compulsory rates and significant differences between public and private sector employees. In particular, voluntary contributions, both at the intensive and extensive margin, tend to increase when employer contribution rates exceed those of employees. Chapter 3 investigates whether saving decisions in private pension plans significantly vary among different employment groups. Systematic savings differences are documented for contribution patterns and portfolio choices. On average, self-employed individuals contribute higher nominal amounts and exhibit a greater tendency to take on investment risk. Additionally, a Monte Carlo simulation of long-term outcomes shows that the self-employed accumulate greater pension wealth, whereas employees achieve superior investment performance. Chapter 4 broadens the scope of the dissertation by employing a large-scale microsimulation framework on pension accounting cycles to evaluate alternative pension schemes and different rules of benefit adjustment mechanisms. A novel methodological approach is used to retrospectively analyze different pension design parameters. The results highlight critical trade-offs between retirement income adequacy and pension fund solvency. Collectively, these essays provide comprehensive empirical evidence on contribution policy, pension plan design, funding solvency, retirement savings outcomes, and the behavioral economics underpinning financial decision-making in private pension plans.