New challenges in pension industry: proposals of personal pension products

Within the current post-crisis economic environment, characterized by low growth and low interest rates, retirement and long-term saving represent a crucial challenge. Furthermore, the expansion of life expectancies modifies the demand of pension products and insurers and pension providers have to guarantee the sustainability and competitiveness of their products, in spite of the economic stagnation. Within the context of the personal pension products, in the paper we propose a new contract with profit participation, which consists in a deferred life annuity with variable benefits changing according with two dynamic financial elements: the periodic financial result of the invested fund year by year and the first order financial technical base checked at the beginning of predefined intervals all along the contract life. A numerical implementation explains the forecasted trend of the inflows and outflows connected to the contract under financial and demographic stochastic assumptions.