Bigger is better in pension funds, researchers find
Monday, September 12, 2011 - 12:00
in Mathematics & Economics
The health of the pension system is front page news in countries around the world with an ongoing debate on required contribution rates or minimum retirement ages. An equally relevant issue is how efficiently savings invested in pension funds are managed. A paper written by two professors at the University of Toronto's Rotman School of Management points to economies of scale in pension funds as a powerful tool to increase the wealth accumulated for retirement.