Articles Archives - Page 36 of 140 - Pension Policy International

19AugAugust 19, 2022

No Country for Old Men (or Women): The Impact of Migration on Pension Funding Adequacy and Sustainability

By Thomas Poufinas, James Ming Chen, Charalampos Agiropoulos & George Galanos Retirement security is of paramount importance to working people. Adequate retirement income is also a leading concern for private and public pension systems. Pension funding adequacy measures the ability of pension scheme assets to meet a system’s liabilities. Pension managers accumulate assets primarily from employee contributions. Assets then grow through investment returns. Liabilities consist mainly of benefits promised and paid to pensioners. In several countries, even within the European Union,...

August 19, 2022

Articles, Labor Market2022, COVID-19, Equality, Europe, Migration

19AugAugust 19, 2022

Changes in Retirement Savings During the COVID Pandemic

By Elena Derby, Lucas Goodman, Kathleen Mackie & Jacob Mortenson This paper documents changes in retirement saving patterns at the onset of the COVID-19 pandemic. We construct a large panel of US tax data, including tens of millions of person-year observations, and measure retirement savings contributions and withdrawals. We use these data to document several important changes in retirement savings patterns during the pandemic relative to prior years, and we compare these results to changes in savings patterns during the...

August 19, 2022

Articles, Savings2022, COVID-19, Pension design, US

11AugAugust 11, 2022

Labor Supply Flexibility and Portfolio Selection with Early Retirement Option

By Junkee Jeon & Jehan Oh In this paper, we study an optimal consumption and investment problem of an economic agent who can choose flexible labor supply and an option to early retire in the existence of mandatory retirement date. We model the agent's preference as the Cobb-Douglas utility, which is a function of consumption and leisure, and consider the agent's unit wage rate as a stochastic process. The optimization problem has a feature of combining both stochastic control and...

August 11, 2022

Articles, Labor Market, Pension design2022, Retirement Age, US

11AugAugust 11, 2022

Inequality of Opportunity and Health Performance of Private Health Insurance — Empirical Evidence from China

By Rui Li, Minxue Jia & Su Yang Background: The role of private health insurance in protecting the population's health is an essential global concern. However, the for-profit nature of private health insurance has led to inequality of opportunity for coverage, which has implications for the health performance of insurance.Method: This article uses the 2018 China Urban Statistics Yearbook and cross-sectional data from the China Health and Retirement Longitudinal Study (CHARLS) of 2015 and 2018. Based on the Heckman two-step...

August 11, 2022

Articles, System Characterization2022, China, Equality, Healthcare, Private Pensions, Social Security

11AugAugust 11, 2022

Public Redistribution in Europe: Between Generations or Income Groups?

By Bernhard Hammer, Michael Christl & Silvia De Poli Governments face a potential trade-off between provision for the population in retirement and the support of working-age households with low income. Using EUROMOD-based microdata from 28 countries, we quantify public redistribution to pensioner- and working-age households, distinguishing also by income group. In general, Northern European countries are characterized by a low net redistribution between households, limited public pensions, but a strong support of low-income households. By contrast, most Southern European countries...

August 11, 2022

Articles, Public Pensions2022, Equality, Europe, Income

05AugAugust 5, 2022

On the Impact of Low Interest Rates on Common Withdrawal Rules in Old Age

By An Chen, Stefan Schelling & Nils Sørensen Ensuring a desired standard of living in retirement has been strongly challenged by increasing life expectancy, and simultaneously by the current and possibly long-lasting low interest environment. In contrast to literature in this field which claims annuitization of wealth being a vital part of retirement planning, many people manage their retirement savings and withdrawal policy during the retirement period independently. To this end, several easily applicable self-managed withdrawal rules are commonly recommended...

August 5, 2022

Articles, Payout, Pension design, Savings2022, Income, Withdrawals

05AugAugust 5, 2022

The Misery of Spending Down the Nest Egg: The Effect of Annuitization on Consumption and Wellbeing

By Yu Gao, George Loewenstein & Xianghong Wang We study the effects of annuitization compared to spending down a lump-sum on consumption and subjective wellbeing. Analyzing longitudinal data on UK retirees before and after the pension reform that provided greater freedom to draw down savings, we find that annuitization increased retirees’ consumption and life satisfaction. To further examine the behavioral channel of these effects, we conducted a field experiment with college students, giving them a flow or lump-sum payment. As...

August 5, 2022

Articles, Payout, Pension design, Savings2022, Income, Pension Reform, UK

05AugAugust 5, 2022

Public Wage and Pension Indexation in the Euro Area: An Overview

By Cristina D. Checherita-Westphal, João Domingues Semeano, Elena Ahonen, Pierrick Stinglhamber, Stefan Van Parys, Johannes Clemens, Katri Urke, Orsolya Soosaar, Maria Vergou, Maria Flevotomou, David Staunton, Jorge Martínez-Pagés, Aris Avgousti, Gintare Zelionkaite, Olivier Delobbe, Florian Henne, Baiba Brusbārde, John Farrugia, Juergen Attard, Fabrizio Renzi, Marco Savegnago, Doris Prammer, Lukas Reiss, Gerard Eijsink, Jip Italianer, Maria Manuel Campos, Andreja Strojan Kastelec, Barbora Palášthyová, Vratislav Pisca & Jarkko Kivistö. If the responses of wages – both private and public – and of...

August 5, 2022

Articles, System Characterization2022, EU, Income, Labor Market, Social Security

28JulJuly 28, 2022

In a Highly Indebted Economy: Security Issues for the Asset-based China’s Reform and the Financial System

By Tianyong Zhou Since the start of the 21st century, all major global economies have been experiencing a shift to a model of low consumption, low interest rate, low inflation, low growth and high debt. China is no exception. This article argues that in the high-indebtedness economic model, the proportion of committed and guaranteed debt service credit is decreasing, while the proportion of asset-backed credit corresponding to debt is on the rise; and with respect to currency stability, the role...

July 28, 2022

Articles, System Characterization2022, China, Political economy, Public Pensions

28JulJuly 28, 2022

Trust and Retirement Preparedness: Evidence from Singapore

By Benedict S. Koh, Olivia S. Mitchell & Joelle H. Fong Trust is an essential component of the financial system, and distrust can undermine saving and economic growth. Accordingly, prior research has shown that survey responses to a question about ‘trust in people’ are associated with household willingness to invest in the stock market. Nevertheless, little is known about how trust shapes economic behaviors predictive of retirement preparedness. Our study draws on the Singapore Life Panel (SLP®), a high-frequency internet...

July 28, 2022

Articles, Investing, Savings2022, Financial Literacy, Risk, Singapore

August 2022

No Country for Old Men (or Women): The Impact of Migration on Pension Funding Adequacy and Sustainability

Changes in Retirement Savings During the COVID Pandemic

Labor Supply Flexibility and Portfolio Selection with Early Retirement Option

Public Redistribution in Europe: Between Generations or Income Groups?

On the Impact of Low Interest Rates on Common Withdrawal Rules in Old Age

The Misery of Spending Down the Nest Egg: The Effect of Annuitization on Consumption and Wellbeing

July 2022

In a Highly Indebted Economy: Security Issues for the Asset-based China’s Reform and the Financial System

Trust and Retirement Preparedness: Evidence from Singapore