Articles Archives - Page 127 of 141 - Pension Policy International

23FebFebruary 23, 2017

Resultados de la Encuesta Nacional ¿Qué piensan los Millennials mexicanos del ahorro para el retiro?

En el marco del 20 Aniversario del Sistema de Ahorro para el Retiro (SAR), la CONSAR presenta hoy los resultados de la Encuesta Nacional denominada “¿Qué piensan los Millennials mexicanos del ahorro para el retiro?”. Dicha encuesta tuvo como objetivo identificar el conocimiento y las actitudes de la población mexicana entre 20 y 30 años en materia de pensiones y retiro. La importancia del estudio radica en que esta población no había sido estudiada antes en nuestro país bajo la...

February 23, 2017

Articles, Spanish

23FebFebruary 23, 2017

Savings Externalities in a Second-Best World

By Andrew T. Hayashi (University of Virginia) & Daniel Patrick Murphy (University of Virginia) Abstract: The debate among legal scholars about individuals’ failure to save enough for retirement happens on a “micro” level. It focuses on the causes and consequences of undersaving from the perspective of individuals and analyzes how legal interventions, such as tax subsidies and nudges, can best address individual saving mistakes. This debate depends on certain assumptions about how the macroeconomy operates. When these assumptions...

February 23, 2017

Articles, Regulation, Savingsefficiency, Savings, Voluntary pensions

05FebFebruary 5, 2017

Employee Saving and Investment Decisions in Defined Contribution Pension Plans: Survey Evidence from the UK

By Alistair Byrne This paper uses data from a survey of the members of a UK defined contribution pension plan to explore the attitudes and knowledge of employees faced with pension saving and investment decisions. The results are consistent with behavioural economics in that many employees show limited interest in their pension arrangements. Not all members have received advice about their pension, but those who have are more likely to have calculated their savings needs, to have higher levels of...

February 5, 2017

Articles, Investing, Labor Market, SavingsSocial Pensions, Social Protection

04FebFebruary 4, 2017

Savings After Retirement: A Survey

By Mariacristina De Nardi, Eric French,& John B. Jones The saving patterns of retired U.S. households pose a challenge to the basic life-cycle model of saving. The observed patterns of out-of-pocket medical expenses, which rise quickly with age and income during retirement, and heterogeneous lifespan risk, can explain a significant portion U.S. savings during retirement. However, more work is needed to disentangle these precautionary saving motives from other motives, such as the desire to leave bequests. An important complementary question...

February 4, 2017

Articles, Labor Market, SavingsBehavior, Financial Education, Financial Inclusion

04FebFebruary 4, 2017

Welfare and Generational Equity in Sustainable Unfunded Pension Systems

By Alan J. Auerbach & Ronald Lee We evaluate several actual and hypothetical sustainable PAYGO pension structures, including: (1) versions of the US Social Security system with annual adjustments of taxes or benefits to maintain fiscal balance; (2) Sweden's Notional Defined Contribution system and several variants developed to improve fiscal stability; and (3) the German system, which also includes annual adjustments to maintain fiscal balance. For each system, we present descriptive measures of uncertainty in representative outcomes for a typical...

February 4, 2017

Articles, Investing, Savings, System SustainabilityInvestment, Sustainability

04FebFebruary 4, 2017

Retirement Security in an Aging Society

By James M. Poterba The share of the U.S. population over the age of 65 was 8.1 percent in 1950, 12.4 percent in 2000, and is projected to reach 20.9 percent by 2050. The percent over 85 is projected to more than double from current levels, reaching 4.2 percent by mid-century. The aging of the U.S. population makes issues of retirement security increasingly important. Elderly individuals exhibit wide disparities in their sources of income. For those in the bottom half of...

February 4, 2017

Aging, Articles, Labor Market, SavingsBehavior, Financial Education, Investment

04FebFebruary 4, 2017

The Role of Time Preferences and Exponential-Growth Bias in Retirement Savings

By Gopi Shah Goda, Matthew R. Levy, Colleen Flaherty Manchester, Aaron Sojourner & Joshua Tasoff There is considerable variation in retirement savings within income, age, and educational categories. Using a broad sample of the U.S. population, we elicit time preference parameters from a quasi-hyperbolic discounting model, and perceptions of exponential growth. We find that present bias (PB), the tendency to value utility in the present over the future in a dynamically inconsistent way, and exponential-growth bias (EGB), the tendency to...

February 4, 2017

ArticlesBehavior, Financial Education

04FebFebruary 4, 2017

Do Employer Pension Contributions Reflect Employee Preferences? Evidence from a Retirement Savings Reform in Denmark

By Itzik Fadlon, Jessica A. Laird & Torben Heien Nielsen This paper studies how firms set contributions to employer-provided 401(k)-type pension plans. Using a reform that decreased the subsidy for contributions to capital pension accounts for Danish workers in the top income tax bracket, we provide strong evidence that employers' contributions are based on their employees' savings preferences. We find an immediate decrease in employer contributions to capital accounts, whose magnitude increased in the share of employees directly affected by...

February 4, 2017

Articles, Labor Market, SavingsBehavior, Sustainability

04FebFebruary 4, 2017

Do Savings Increase in Response to Salient Information about Retirement and Expected Pensions?

By Mathias Dolls, Philipp Doerrenberg, Andreas Peichl & Holger Stichnoth How can retirement savings be increased? We explore a unique policy change in the context of the German pension system to study this question. As of 2004, the German pension authority started to send out annual letters providing detailed and comprehensible information about the pension system and individual expected pension payments. This reform did not change the level of pensions, but only manipulated the knowledge about and salience of expected...

February 4, 2017

Articles, Labor Market, SavingsBehavior

04FebFebruary 4, 2017

The Political Economy of Underfunded Municipal Pension Plans

By Jeffrey Brinkman, Daniele Coen-Pirani & Holger Sieg This paper analyzes the determinants of underfunding of local government's pension funds using a politico-economic overlapping generations model. We show that a binding downpayment constraint in the housing market dampens capitalization of future taxes into current land prices. Thus, a local government's pension funding policy matters for land prices and the utility of young households. Underfunding arises in equilibrium if the pension funding policy is set by the old generation. Young households...

February 4, 2017

Articles, Corporate Governance, System SustainabilityFunding, Political economy

February 2017