Evaluation of the 3^rd pillar pension funds in Lithuania

Abstract

The article emphasizes the increasing importance of the 3^rd pillar pension funds and necessity of their assessment in Lithuania. Identified private pension funds evaluation criteria and the expert survey carried out in this paper allowed to ascertain main parameters of evaluation and weigh them according to their importance. Moreover, there is used Delphi method together with Kendall's coefficient of concordance to assure that the attitude of experts and the results of survey are reconcilable and statistically significant. Finally, created model is tested using funds data analysis to assess its reliability. It is expected that scientific recommendations made based on the analysis of the theoretical studies and empiric research data will assist assessing the 3^rd pillar pension funds. In addition, it is supposed that these results will help investors to make a right decision choosing a particular 3^rd pillar pension fund and will be a useful tool to encourage investments into private pension funds in the future.

Keywords:

• private pension funds
• the 3^rd pillar pension funds
• additional voluntary saving
• risk and return
• the Sharpe ratio
• expert survey
• Delphi method

JEL Classification:

• J32
• G11

Additional information

Notes on contributors

Daiva Jurevičienė

Daiva JUREVIČIENĖ. Doctor of Social Sciences, Prof. of Department of Finance Engineering, Vilnius Gediminas Technical University. Research interests: personal finances, individual behaviour, investment, banking, risk management.

Marina Volkova

Marina VOLKOVA. Master of Management and Business Administration. Consultant at Ernst & Young Baltic UAB. Research interests: investment, pension system, business finance, portfolio diversification.