Optimal tactics in community pension model for defined benefit pension plans.

ABSTRACT: Against the backdrop of an aging population, community pension initiatives are gaining traction, permeating societal landscapes. This study delves into the equilibrium strategy within the context of a defined benefit pension plan, employing a differential game framework with a community pension model. Hence, the model entails the company's controls over investment rates in funds, juxtaposed with employees' inclination towards a greater proportion of community pension allocation in said funds. To tackle this issue, a stochastic differential game model for pensions under a community pension scheme is formulated. Leveraging the Hamilton-Jacobi-Bellman equation, we derive the Markov Perfect Nash Equilibrium solution and optimal portfolio. Through numerical simulations, we analyze the impact of

SUBMITTER: Wang J 

PROVIDER: S-EPMC11698423 | biostudies-literature | 2025

REPOSITORIES: biostudies-literature