Book

Population aging, particularly in the West and Asia, has brought many challenges for mandatory social protection, since it is based on the pay-as-you-go system. Thus, the longer the life expectancy of pensioners, the greater the liabilities borne by the system, thus making, in some cases, the social security systems of some countries unsustainable. Therefore, in order to circumvent this problem, many countries have been carrying out reforms in their social security systems, such as increasing the normal retirement age or reducing social security pensions. Then, the pension funds have gained increasing prominence in maintaining the standard of living of many workers at retirement age.   On the other hand, pension funds are the largest investors in global capital markets, with total assets over USD56 trillion. In addition, the financial management of a pension funds is one of the most important components, as it determines whether the benefits assigned in pension plans can be realized. For example, Defined Contribution (DC) pension plans rely on investing the contributions of members in capital markets to generate investment income and provide income in retirement. However, selecting the most appropriate investment strategy is not straightforward, especially when members bear the investment risk individually. Therefore, in this book, I approach the application of AI to improve the income of pension funds and mitigate the risks.