Adequacy Archives - Page 12 of 13 - Pension Policy International

04FebFebruary 4, 2017

Assessing the Distortions of Mandatory Pensions on Labor Supply Decisions and Human Capital Accumulation: How to Bridge the Gap between Economic Theory and Policy Analysis

By Mukul Rutkowski, David A. Robalino & Andras Bodor Mandatory pension systems play a major role in individual savings and labor supply decisions. In particular, it is well known that defined benefit pension schemes, which are not actuarially fair, can create incentives for early retirement and therefore reduce labor supply and the stock of human capital in a given country. This is an important policy issue in middle-income countries, with still low participation rates in the labor force, where the...

February 4, 2017

Adequacy, Articles, Labor MarketBehavior, Regulation, Sustainability

04FebFebruary 4, 2017

Retirement Security: Better Information on Income Replacement Rates Needed to Help Workers Plan for Retirement

By Charles Jeszeck, Kimberley Granger, Jennifer Gregory, Melinda Bowman & Amrita Sen What GAO Found: Household spending patterns varied by age, with mid-career households (those aged 45-49) spending more than older households. For example, according to 2013 survey data from the Bureau of Labor Statistics (BLS), mid-career households spent an estimated average of around $58,500, while young retiree households (those aged 65-69) spent about 20 percent less. While the share of spending was consistent for some categories, other categories had...

February 4, 2017

Adequacy, Articles, Labor MarketFinancial Education, Labor Market, Replacement Rate

04FebFebruary 4, 2017

Are ‘Voluntary’ Self-Employed Better Prepared for Retirement than ‘Forced’ Self-Employed? The Case of the Netherlands and Germany

By Douglas Hershey, Hendrik van Dalen, Weiteke Conen & Kene Henkens When it comes to financial preparation for retirement, self-employed workers in many European countries face unique challenges not encountered by traditional wage earners. This is particularly true for self-employed workers who do not supervise subordinate personnel. This is the case because many self-employed individuals in nations such as the Netherlands and Germany do not have large-scale access to employer-sponsored pensions, which are a mainstay of pension support for most...

February 4, 2017

Adequacy, Articles, Labor Market, Pension designManagement, Sustainability

04FebFebruary 4, 2017

Adequacy, Fairness and Sustainability of Pay-as-You-Go-Pension-Systems: Defined Benefit Versus Defined Contribution

By Jennifer Alonso-García, María el Carmen Boado-Penas & Pierre Devolder There are three main challenges facing public pension systems. First, pension systems need to provide an adequate income for pensioners in the retirement phase. Second, participants wish a fair level of benefits in relation to the contributions paid. Last but no least, the pension system would need to be financially sustainable in the long run. In this paper, we analyse defined benefit versus defined contribution schemes in terms of adequacy,...

February 4, 2017

Adequacy, Articles, System SustainabilityManagement, Regulation

04FebFebruary 4, 2017

Pension Reform in Britain

By Edward Whitehouse This paper examines the evolution of the pension system in Britain. In particular, it focuses on the shift from pay-as-you-go, state-run defined-benefit pensions to individual, private-sector, funded defined-contribution accounts. It looks at three issues in this reform: the financing of the transition from pay-as-you-go to funded provision; the fiscal impact of voluntary switching and adverse selection; and the question of the degree to which personal pension accounts were 'over-sold' to individuals for whom they were not suitable....

February 4, 2017

Adequacy, Articles, RegulationRegulation

04FebFebruary 4, 2017

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, ArticlesAging (and old age), Labor Market

04FebFebruary 4, 2017

Adequacy (1) Pension entitlements, replacement rates and pension wealth

By Edward Whitehouse This note briefly sets out a methodology for calculating prospective pension entitlements promised in the future to todays workers. This method can (and has been) applied to a wide range of countries with very different pension systems. The entitlements shown here are prospective. It looks at theoretical values and so illustrates the way the current parameters and rules of pension systems will work for different example individuals. This can be used to assess the adequacy of future...

February 4, 2017

Adequacy, Articles, RegulationLabor Market, Replacement Rate

04FebFebruary 4, 2017

World Bank Pension Reforms and Development Patterns in the World System and in the Wider Europe: A 109 Country Investigation Based on 33 Indicators of Economic Growth, and Human, Social and Ecological Well-Being, and a European Regional Case Study

By Arno Tausch On the first anniversary of the death of Nobel Laureate Professor Franco Modigliani, the Luxembourg Institute for European and International Studies (LIEIS) organised a conference on 'Reforming European Pension Systems' on 24 and 25 September 2004 in Schengen. Initially, the intention was to hold this conference in the presence of Professor Modigliani who had written a comprehensive paper for the LIEIS. However, due to ill health, such a meeting had to be postponed repeatedly. A third date was...

February 4, 2017

Adequacy, Articles, Regulation, SavingsManagement, private pension management, public pension management), Social Protection

03FebFebruary 3, 2017

Micro-pensions in India: Issues and challenges

By Savita Shankar & Mukul G. Asher This article aims to fill a gap in the social security literature on India by examining the role of micro-pensions. The analysis suggests that because of the heterogeneity of the target population, micro-pension products — with microfinance institutions (MFIs) as the main, but not only sponsors — should be voluntary and portable and permit experimentation in their design and in the delivery of services. Accordingly, decentralized micro-pension schemes that operate within an appropriate...

February 3, 2017

Adequacy, Articles, Corporate Governance, Pension designCorporate Governance, Labor Market

03FebFebruary 3, 2017

Non-contributory pensions

By Sebastian Galiani, Paul Gertler & Rosangela Bando The creation of non-contributory pension schemes is becoming increasingly common as countries struggle to reduce poverty. Drawing on data from Mexico's Adultos Mayores Program (Older Adults Program) - a cash transfer scheme aimed at rural adults over 70 years of age - we evaluate the effects of this program on the well-being of the beneficiary population. Exploiting a quasi-experimental design whereby the program relies on exogenous geographical and age cutoffs to identify...

February 3, 2017

Adequacy, Labor Market, NewsSocial Protection

February 2017