September 2017

01Sep

Do Good Working Conditions Make You Work Longer? Evidence on Retirement Decisions Using Linked Survey and Register Data

By Petri Bockerman (Labour Institute for Economic Research; University of Turku) and Pekka Ilmakunnas (Aalto University School of Business) We analyze the potential role of adverse working conditions and management practices in the determination of employees' retirement behavior. Our data contain both comprehensive information regarding perceived job disamenities, job satisfaction, and intentions to retire from nationally representative cross-sectional surveys and information on employees' actual retirement decisions from longitudinal register data that can be linked to the surveys. Using a trivariate...

September 1, 2017
Adequacy, Aging, Articles, Labor Market, ,
Read more...
01Sep

Debt and Financial Vulnerability on the Verge of Retirement

By Annamaria Lusardi, Olivia S. Mitchell & Noemi Oggero We analyze older individuals’ debt and financial vulnerability using data from the Health and Retirement Study (HRS) and the National Financial Capability Study (NFCS). Specifically, in the HRS we examine three different cohorts (individuals age 56–61) in 1992, 2004, and 2010 to evaluate cross-cohort changes in debt over time. We also use two waves of the NFCS (2012 and 2015) to gain additional insights into debt management and older individuals’ capacity...

September 1, 2017
Aging, Articles, Labor Market, Savings, Slider-Left, , ,
Read more...

August 2017

21Aug

Here’s how China’s Ageing will Narrow Income Gaps in West

In recent years politicians and thinkers in the developed world have found themselves struggling to explain three trends that have gripped advanced economies: the long-term fall in real interest rates adjusted for inflation, the fall in workers’ real wages, and the sharp rise in inequality between rich and poor. In truth, these three trends are easy enough to understand if you take a global, rather than a national or regional view. They can all be explained by the economic rise of...

August 21, 2017
News, Slider, , , ,
Read more...
13Aug

An Evaluation of the Electronic Pension Payment System in Tajikistan

By Ruben Barreto & Natalie Chun (Asian Development Bank) Modernizing government-to-person (G2P) pension payments from traditional cash-based to modern electronic-based delivery systems can improve outcomes for pensioners, government entities, and financial services providers. Cash operations, though convenient in some circumstances, involve manual handling procedures in the distribution process that entail large overhead expenses and significant operational risks. These are highly susceptible to fraud and leakages due to difficulties in appropriately reconciling payments. However, experience has shown that implementing electronic-based G2P payments...

August 13, 2017
Articles, Management, Pension design, Slider-Left, , ,
Read more...

March 2017

08Mar

Using Panel Tax Data to Examine the Transition to Retirement

By Peter J. Brady & Steven Bass (Investment Company Institute); Jessica Holland & Kevin Pierce (Government of the United States of America - Internal Revenue Service) Using panel data from the Internal Revenue Service’s Statistics of Income (SOI) Division, we find that most individuals do not experience a reduction in inflation-adjusted spendable income after claiming Social Security. We also examine the composition of income after claiming and find that both Social Security benefits and non-Social Security retirement distributions typically represent...

March 8, 2017
Articles, Labor Market, Pension design, ,
Read more...

February 2017

04Feb

Retirement delay unified or differentiated: based on the interaction between pension deficit and labor market

By Zou Tieding & Ye Hang The pension deficit has been rapidly enlarging for more than a decade. If the retirement age is set at a low level, it might trigger a pensions crisis. Since the average life span of the Chinese has extended from 71 to 76 years old in last ten years, the feasibility of rising the retirement age has also been promoted. Methods: This paper aims to construct a mathematical model for choosing a proper policy about...

February 4, 2017
Aging, Articles, Labor Market, System Sustainability, ,
Read more...
04Feb

Changing Frameworks for Retirement Security

By Olivia S. Mitchell In 1963, the termination of the Studebaker Corporation’s pension plan wiped out or significantly reduced the pensions of thousands of the automaker’s employees and retirees. In response, Congress passed the 1974 Employee Retirement Income Security Act (ERISA), a monumental and revolutionary piece of legislation crafted to address corporate pension underfunding and set new rules regarding defined benefit (DB) and other retirement plans. ERISA also established the Pension Benefit Guaranty Corporation as a government-run insurer to serve...

February 4, 2017
Articles, Corporate Governance, Regulation, ,
Read more...
04Feb

Workplace-Linked Pensions for an Aging Demographic

By Olivia S. Mitchell & John Piggott Pensions and population aging intersect in two ways. First, demographic change threatens the sustainability of traditional pay-as-you-go social security pensions, leaving workplace-linked pensions with a greater role in retirement provision. Second, as the Baby Boom generation enters retirement, new challenges arise around its retirement support. This chapter reviews some of the implications of population aging for workplace pensions in this new environment, outlines market considerations important for workplace-related pension design for the future,...

February 4, 2017
Aging, Articles, Labor Market, Pension design, , , ,
Read more...
04Feb

Adequacy (2) : Pension entitlements of recent retirees

By Edward Whitehouse & Asta Zviniene This note discusses how expected benefit levels can be assessed. The note points out the measurement of current benefit levels that are observable: they do not depend on any assumptions about the future. However, they do depend on past contribution patterns, macroeconomic developments and parameters and rules of the pension system rules that, in many cases, no longer apply today. This briefing discusses the measurement of empirical average pension levels, minimum pensions and the...

February 4, 2017
Adequacy, Aging, Articles,
Read more...