Articles Archives - Page 31 of 140 - Pension Policy International

06JanJanuary 6, 2023

Standardized, Unitized, Accretive Longevity Insurance: Lessons from the Differing Demand for Annuities and Life Insurance

By Andrew Stumpff Morrison The historic U.S. shift from defined-benefit to defined-contribution employer-sponsored retirement plans has produced, among other things, a reduction in sharing of the risk of outliving one’s retirement savings. Commercial annuity contracts are available to insure this risk, but despite efforts to encourage their acquisition, few people own them. Close comparison with another life-cycle risk – that addressed by life insurance, which is more widely purchased by consumers – highlights as a probable reason for this low...

January 6, 2023

Articles, Pension design2022, Behavioral Science, Defined Contribution, Income, Pension Payout

06JanJanuary 6, 2023

Optimal Retirement with Disability Pensions

By Hans Fehr & Adrian Fröhlich This paper develops a general equilibrium life-cycle model with endogenous retirement and disability risk, in order to quantify the impact of recent pension reforms in Germany. At certain ages households may either apply for disability pensions (DP) or old-age pensions (OAP), de-pending on eligibility rules and the generosity of the two programs. Our policy analysis focus on the increase in the normal retirement age (NRA) from age 65 to 67 (Reform 2007) and the recent...

January 6, 2023

Articles, Pension design2022, Pension Payout

06JanJanuary 6, 2023

The Effect of Pension Wealth on Employment

By Sebastian Becker, Hermann Buslei, Johannes Geyer & Peter Haan This study provides novel evidence about the pension wealth elasticity of employment. For the identification we exploit reform-induced variation of pension wealth that is related to the number of children but which does not affect the implicit tax rate of employment. We use a difference-in-differences estimator based on administrative data from the German pension insurance and find that, on average, the negative employment effect of pension wealth is significant and economically...

January 6, 2023

Articles, Pension design2022, Gender Gap, Labor Market, Pension Reform

21DecDecember 21, 2022

Turn the Ship: The Moral Imperative and Legal Authority to Protect Retirees with Defaulted Student Loans from Social Security Offset

By: Johnson Tyler The U.S. Department of Education (ED) is not powerless when it comes to debt collection or defaulted borrowers. It both has the moral imperative and legal authority to stop seizing Social Security benefits from elderly (62+) borrowers in default. An underutilized law allows an agency to exempt an entire class of debtors from Treasury Offset, the debt collection process that leads to the reduction of Social Security payments. This paper explains the history of offset; why recent...

December 21, 2022

Articles, System Characterization2022, Social Security, US

21DecDecember 21, 2022

Inferring Occupation Arduousness from Poor Health Beyond the Age of 50

By: Vincent Vandenberghe In the absence of a direct description of occupation arduousness, this paper shows how it can be inferred from poor health beyond the age of 50. Using retrospective lifetime data from the Survey of Health, Ageing and Retirement in Europe (SHARE) including the respondents’ professional career described with ISCO 2-digit, this paper finds a statistically significant link between many occupations and the risk of poor health beyond the age of 50. Next, we quantify the relative contribution...

December 21, 2022

Aging, Articles, Labor Market2022, Europe, Health, Pension design

21DecDecember 21, 2022

International Comparative Analysis of Worker Age Distribution in the Service Industry

By: Donghee Lee The problem of youth unemployment has recently become one of the hottest issues in the South Korean economy. The unemployment rate of the youth, those aged 15 to 29, hit 9.0% in 2014, which is the highest on record since the Asian financial crisis in 1997. This raises concern because while the unemployment rate for all ages fell 0.2%p during 2010~2014, the youth unemployment rate rose 1.0%p in the same period. In addition, the Korean employment rate...

December 21, 2022

Articles, Labor Market2022, Aging, South Korea

20DecDecember 20, 2022

Declining US Natural Interest Rate: Quantifying and Qualifying the Role of Pensions

By: Jacopo Bonchi & Giacomo Caracciolo We develop a life-cycle model and calibrate it to the US economy to quantify and qualify the role of the public pension system for the past and future trend of the natural interest rate, the so-called r∗. Between 1970 and 2015, past pension reforms mitigated the secular decline in r∗, raising it by around 1%, mainly through the positive effect of a higher replacement rate. As regards the future, we simulate the demographic trends, expected...

December 20, 2022

Articles, System Characterization2022, Pension Management, Public Pensions, US

20DecDecember 20, 2022

Conversion from DB to DC: The EU Pension Custodian

By: Hans van Meerten Worldwide we see a move to DC schemes. Most – if not all countries – choose the operate DB next to DC. However, in The Netherlands, the legislator choose for so-called conversion: transforming 'old' DB- to 'new' DC. In 2011, the Dutch legislator introduced the so called 'Pension Custodian'. It could only be used for the Dutch 2nd pillar DC IORP, the PPI. This Pension Custodion should *not* be confused with the IORP II Custodian. However, with the implementation of...

December 20, 2022

Articles, Pension design2022, Defined Benefit, Defined Contribution, EU, Netherlands

20DecDecember 20, 2022

Spending Trajectories after Age 65: Variation by Initial Wealth

By: M Hurd & Susann Rohwedder There has been extensive research on the importance of saving for retirement and on tools to support the accumulation of retirement wealth. Much less attention has been paid to the decumulation phase, that is, the spending down of wealth following retirement. Understanding the decumulation phase requires information about the spending patterns of older households and how those patterns evolve with age. This study uses comprehensive longitudinal data on total household spending from a survey...

December 20, 2022

Articles, Pension design, Savings2022, Retirement security, US

08DecDecember 8, 2022

Platforms Disrupting Reputation: Precarity and Recognition Struggles In The Remote Gig Economy

By Alex Wood & Vili Lehdonvirta Digitalisation and the use of algorithms have raised concerns over the future of work, the gig economy being identified by some as particularly concerning. In this article, we draw on 70 interviews in addition to participant observations to highlight the role of gig economy platforms in producing a novel form of reputational insecurity. This insecurity is generated by platforms disrupting the traditional operation of industry reputation in freelance markets. We highlight three areas of transformation...

December 8, 2022

Articles, Labor Market2022, Equality, Informal Sector

January 2023

Standardized, Unitized, Accretive Longevity Insurance: Lessons from the Differing Demand for Annuities and Life Insurance

Optimal Retirement with Disability Pensions

The Effect of Pension Wealth on Employment

December 2022

Inferring Occupation Arduousness from Poor Health Beyond the Age of 50

International Comparative Analysis of Worker Age Distribution in the Service Industry

Declining US Natural Interest Rate: Quantifying and Qualifying the Role of Pensions

Conversion from DB to DC: The EU Pension Custodian

Spending Trajectories after Age 65: Variation by Initial Wealth

Platforms Disrupting Reputation: Precarity and Recognition Struggles In The Remote Gig Economy