Scholarlink

<p>This study examines how market risks impact the sustainability and performance of the National Pension System (NPS). NPS relies on defined contributions from both employees and employers to build a corpus during the employee’s service period. Upon retirement, employees use the corpus fund to sustain their livelihood. A critical concern for individuals is whether the corpus will grow sufficiently to be sustainable or if it will deplete, leaving them financially vulnerable at an advanced age. We explore the impact of market risks on the performance of the corpus resulting from the NPS. To address this, we quantify market risks using Monte Carlo simulations with historical data to model their impact on NPS. We quantify the risk of pension corpus being insufficient and the cost to the Government to hedge the risk arising from guaranteeing the pension.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Understanding the effect of market risks on new pension system and government responsibility

  • 期刊论文

  • 发表日期：

    2025年4月1日

查看全文
  • Sourish Das,
  • Bikramaditya Datta,
  • Shiv Ratan Tiwari

摘要

This study examines how market risks impact the sustainability and performance of the National Pension System (NPS). NPS relies on defined contributions from both employees and employers to build a corpus during the employee’s service period. Upon retirement, employees use the corpus fund to sustain their livelihood. A critical concern for individuals is whether the corpus will grow sufficiently to be sustainable or if it will deplete, leaving them financially vulnerable at an advanced age. We explore the impact of market risks on the performance of the corpus resulting from the NPS. To address this, we quantify market risks using Monte Carlo simulations with historical data to model their impact on NPS. We quantify the risk of pension corpus being insufficient and the cost to the Government to hedge the risk arising from guaranteeing the pension.