Articles Archives - Page 3 of 140 - Pension Policy International

31JanJanuary 31, 2025

Pensions investment outlook 2025: U.S. policy uncertainty clouds road ahead

By Investment Managers The coming year will likely be characterized by three main drivers: the U.S.’s politically driven polices, structural economic 1 The implicit yield curve based on the floating rates associated with an interest rate swap. weaknesses and political uncertainty in Europe, and China’s restructuring of its troubled property market. Overall, our forecasts suggest global growth looks set to continue its 2024 pace of 3.2% in 2025, before easing in 2026 to 2.9%. This outlook could be compounded by the implementation...

January 31, 2025

Articles, Investment2025, ESG, Investment, Public Policy

31JanJanuary 31, 2025

Household Saving in Japan: The Past, Present, and Future

By Charles Yuji Horioka This paper explores the determinants of the level of, and trends over time in, Japan’s household saving rate, with emphasis on the impact of the age structure of the population, and makes projections about future trends therein. The paper finds that Japan’s household saving rate has not always been high either absolutely or relative to other countries and that it was only during the 1961-86 period that it exceeded 15%. Past and future trends in Japan’s...

January 31, 2025

Articles, Savings2024, Aging, Japan, Saving, Social Security

31JanJanuary 31, 2025

Financial Inclusion Across the United States

By Motohiro Yogo, Andrew Whitten & Natalie Cox We study retirement and bank account participation for the universe of U.S. households with a member aged 50 to 59 in the administrative tax data. ZCTA-level average income, income inequality, and racial composition predict retirement account participation for low-income households, conditional on household income and regional price parities. Income inequality also predicts bank account participation for low-income households. We estimate the causal effect of access to an employer retirement plan on participation. Recent policy proposals...

January 31, 2025

Articles, System Characterization2024, Financial Inclusion, Income, US

31JanJanuary 31, 2025

The Looming Crisis: China’s Pension System Faces a Generational Challenge

By Jessica Huang China, a nation of immense scale and ambition, is in the grip of an urgent demographic crisis. Declining birth rates and rising life expectancy are rapidly aging the population. Within the next two decades, the number of retirement-age individuals is expected to surpass the entire population of the United States, with an estimated 402 million people over 60 by 2040—28% of China’s total population. This demographic shift is straining the workforce, social services, healthcare infrastructure, and economic productivity, marking...

January 31, 2025

Aging, Articles2025, Aging, China, Labor Market, Sustainability

24JanJanuary 24, 2025

Influencing Retirement Savings Decisions with Automatic Enrollment and Related Tools

By John Beshears, James J. Choi, David Laibson & Brigitte C. Madrian Historically, retirees in the US relied on the “three-legged stool” of Social Security, defined benefit (DB) pension plans, and personal savings to provide retirement income.1 Beginning in the late 1970s, however, access to DB plans began to fall while access to defined contribution (DC) plans, which require individuals to make their own savings plan contributions and investment decisions during their working years, rose.2 As of December 2023, retirement assets in...

January 24, 2025

Articles, Savings2024, Behavioral Science, Retirement Planning, Saving

24JanJanuary 24, 2025

Challenges Related to Aging Population

By Drishti The Vision Foundation The Supreme Court of India refused to entertain a writ petition that sought the establishment of a dedicated Ministry for senior citizens. The writ petition referred to senior citizens (population ageing) as a vulnerable class that deserves special attention under Article 21 of the Constitution, which ensures the right to a dignified life. Source Drishtiias

January 24, 2025

Aging, Articles2025, Aging, India, Labor Market, System sustainability

24JanJanuary 24, 2025

The Role of ‘Green’ Investors in Reducing Corporate Carbon Emissions

By National Bureau of Economic Research The researchers categorize public pension funds based on the political affiliation of the leaders who control them. Those under Democratic control, either through governance or board trusteeship, were labeled “green.” Those under Republican control were labeled “non-green.” The researchers assume that Democrats generally favor carbon emission reductions more than Republicans. They study emissions data from 2010–21 for 5,241 facilities across 685 publicly traded companies, along with data on pension fund stock holdings for 24 of...

January 24, 2025

Articles, Investment2024, ESG, Investment, Sustainability

17JanJanuary 17, 2025

Designing Benefits for Platform Workers

By Jonathan Gruber Designing benefits for the growing platform workforce in the U.S. poses significant challenges. While platform workers need protection against unforeseen shocks, work that is often part time and spread across multiple platforms makes the traditional benefits model untenable. This paper reports the results from a survey of drivers and couriers working with Uber to help understand their benefits preferences. We find that there is a wide diversity across these workers in platform earnings, the share of platform...

January 17, 2025

Articles, Labor Market2022, Coverage, Informal Sector, Labor Market, Pension design

17JanJanuary 17, 2025

Retirement Consumption and Pension Design

By Jonas Kolsrud, Camille Landais, Daniel Reck & Johannes Spinnewijn This paper analyzes consumption to evaluate the distributional effects of pension reforms. Using Swedish administrative data, we show that on average workers who retire earlier consume less while retired and experience larger drops in consumption around retirement. Interpreted via a theoretical model, these findings imply that reforms incentivizing later retirement incur a substantial consumption-smoothing cost. Turning to other features of pension policy, we find that reforms that redistribute based on...

January 17, 2025

Articles, Pension design2023, Labor Market, Pension Reform, Retirement Age

17JanJanuary 17, 2025

Pension reform and wealth inequality: Theory and evidence

By Torben M. Andersen, Joydeep Bhattacharya, Anna Grodecka-Messi & Katja Mann A growing literature explores reasons for rising wealth inequality, but is mostly silent on the role of pension systems despite their well-understood influence on life-cycle savings. This paper develops a simple life-cycle model to lay bare the primary theoretical mechanisms connecting pension systems, asset accumulation, and the wealth distribution. Mandated fully-funded plans transform individuals with lower incomes, often characterized as low savers, into asset owners, and may also imply...

January 17, 2025

Articles, System Sustainability2024, Denmark, Equality, Income, Pension Reform, savings

January 2025