Mestrado Bolonha em Finanças ; This paper analyses the challenges posed by the low-yield environment and aging population on pension funds asset management. A newly-created, fictional collective defined contribution pension fund is presented, Bouwen & Pensioen, being the result of the merger of 6 smaller defined benefit funds. Cash equivalent transfer values for each member are calculated and it is found that the new pension fund faces a deficit funding ratio. A forecasting model for the operations of Bouwen & Pensioen is derived. Tests are conducted on relevant variables using the derived model. A proposal is made to the newly-created pension fund regarding the solidarity reserve mechanism and the investment strategy to follow. The proposals allow Bouwen & Pensioen to attain a 100% funding ratio by the end of the forecasted period, keeping the flow of pension payments equitable and fair across generations. ; info:eu-repo/semantics/publishedVersion