February 2018

19Feb

The Optimal Allocation of Longevity Risk with Perfect Insurance Markets

By Antoine Bommier (ETH Zürich) & Hélène Schernberg (ETH Zurich) This paper discusses the allocation of aggregate longevity risk in the case of perfect insurance markets. We show that the optimal allocation transfers some risk to the pensioners, even if pension providers have access to a perfect insurance market. Individuals prefer contributions and benefits to depend on the evolution of aggregate mortality rates rather than being fixed. Indeed, this flexibility offers an interesting diversification strategy where the prospect of a...

February 19, 2018
Aging, Articles, Labor Market, Management, Pension design, , ,
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12Feb

Headed for the Poorhouse: How to Ensure Seniors Don’t Run Out of Cash Before They Run Out of Time

By Bonnie-Jeanne MacDonald (Ryerson University - The National Institute of Aging (NIA)) Income security in later life (age 85) is more important now than ever. More attention needs to be paid to how Canadians can best draw down their savings after retirement and secure adequate income for advanced ages. Retiring Canadians need innovative solutions – ones that add definitive value but place no new pressures on the Canadian public purse. I propose a government-led solution: Canada’s Living Income For the...

February 12, 2018
Aging, Articles, Savings, ,
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12Feb

Headed for the Poorhouse: How to Ensure Seniors Don't Run Out of Cash Before They Run Out of Time

By Bonnie-Jeanne MacDonald (Ryerson University - The National Institute of Aging (NIA)) Income security in later life (age 85) is more important now than ever. More attention needs to be paid to how Canadians can best draw down their savings after retirement and secure adequate income for advanced ages. Retiring Canadians need innovative solutions – ones that add definitive value but place no new pressures on the Canadian public purse. I propose a government-led solution: Canada’s Living Income For the...

February 12, 2018
Aging, Articles, Savings, ,
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12Feb

The Effect of Physical and Cognitive Decline at Older Ages on Work and Retirement: Evidence From Occupational Job Demands and Job Mismatch

By Peter Hudomiet (RAND Corporation), Michael D. Hurd (RAND Corporation; State University of New York at Stony Brook - College of Arts and Science - Department of Economics; National Bureau of Economic Research (NBER)), Susann Rohwedder (RAND Corporation) & Robert J. Willis (University of Michigan at Ann Arbor - Department of Economics; National Bureau of Economic Research (NBER)) As workers age, their physical and cognitive abilities tend to decline. This could lead to a mismatch between workers’ resources and the...

February 12, 2018
Aging, Articles, Labor Market, ,
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05Feb

Parents with an Unemployed Adult Child: Labor Supply, Consumption, and Savings Effects

By Kathryn Anne Edwards (RAND Corporation) & Jeffrey B. Wenger (RAND Corporation; American University - School of Public Affair) The risk of labor market, health, and asset-value shocks comprise profound retirement savings challenges for older workers. Parents, however, may experience added risk if their children experience adverse labor market shocks. Prior research has shown that parents support their children financially through an unemployment spell. In this paper, we also provide evidence of financial support from parents and investigate if this...

February 5, 2018
Aging, Articles, Labor Market, ,
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05Feb

Long-Run Saving Dynamics: Evidence from Unexpected Inheritances

By Jeppe Druedahl (University of Copenhagen - Department of Economics) & Alessandro Martinello (Lund University - Department of Economics; Danish National Institute of Social Research (SFI)) We exploit inheritance episodes to provide novel causal evidence on long-run saving dynamics. For identification, we combine a panel of administrative wealth reports with the unexpected timing of sudden parental deaths. After inheritance, net worth converges towards the path established before parental death, and convergence is faster for liquid assets. Using a generalized structural...

February 5, 2018
Aging, Articles, Savings, Slider-Left,
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January 2018

31Jan

Confidence in Retirement – How well are Kenyans prepared for retirement?

By Strathmore University The purpose of this study is to assess and evaluate the views and attitudes of working age Kenyans who are members of a registered workplace pension schemes. The study reveals the extent in which different factors influence individual’s level of optimism or pessimism about retirement as well as Kenyans actions to prepare for retirement. (more…)

January 31, 2018
Aging, Articles, Labor Market, Pension design, Slider-Left, , ,
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29Jan

Understanding Earnings, Labor Supply, and Retirement Decisions

By Xiaodong Fan (University of New South Wales (UNSW)), Ananth Seshadri (University of Wisconsin - Madison - Department of Economics) & Christopher Taber (National Bureau of Economic Research (NBER); University of Wisconsin - Madison) We develop and estimate a model in which individuals make decisions on consumption, human capital investment, labor supply, and retirement. Unlike all previous work, our model allows both an endogenous wage process (which is typically assumed exogenous in the human capital and earnings dynamics literature). In...

January 29, 2018
Aging, Articles, Labor Market, , ,
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29Jan

Work-Life Balance and Labor Force Attachment at Older Ages

By Marco Angrisani (Center for Economic and Social Research (CESR)), Maria Casanova (University of California, Los Angeles (UCLA) - Department of Economics) & Erik Meijer (University of Southern California; RAND Corporation) We use data from the Health and Retirement Study to examine the role of work-life balance (WLB) as a nonmonetary determinant of retirement transitions, conditional on job attributes such as hours of work, compensation and benefits. We show that low levels of WLB are significantly associated with subsequent reductions...

January 29, 2018
Aging, Articles, Labor Market, Slider-Left, ,
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22Jan

Towards a New Pensions Settlement: The International Experience

By Gregg McClymont,‎ Andy Tarrant In a world of ageing populations, and in the midst of a global shift from defined benefit (DB) to defined contribution (DC) pensions, the onus is increasingly on individuals rather than employers to bear the risks of retirement provision. This book weighs the experiences of eight nations across the Americas, Asia and Europe, who have in common early adoption of DC pensions, but very different experiences of mitigation of that risk by the state, either...

January 22, 2018
Aging, Books, Pension design, System Sustainability, ,
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