Articles Archives - Page 44 of 140 - Pension Policy International

17FebFebruary 17, 2022

Assessing Chile’s Pension System: Challenges and Reform Options

By Christopher Evans & Samuel Pienknagura Chile’s pension system came under close scrutiny in recent years. This paper takes stock of the adequacy of the system and highlights its challenges. Chile’s defined contribution system was quite influential when introduced, and was taken as an example by other countries. However, it is now delivering low replacement rates relative to OECD peers, as its parameters did not adapt over time to changing demographics and global returns, while informality persists in the labor...

February 17, 2022

Articles, Pension design, Savings2021, Chile, Pension Reform, Private Pensions, Public Pensions, Replacement Rate

11FebFebruary 11, 2022

Low Demand for Reverse Mortgages in Canada: Price, Knowledge or Preferences?

By Admin SSRN au/at CIRANO, Ismael Choiniere Crevecoeur & Pierre-Carl Michaud High borrowing costs, limited knowledge and preferences could explain why few Canadians purchase reverse mortgages, an asset decumulation product that is appealing to those who are house-rich but cash-poor. In this paper, we first use an asset pricing model to calculate the actuarial fair costs of guarantees built into reverse mortgage products in Canada and compare those estimates to prevailing interest rates in the market for these products. We...

February 11, 2022

Articles, Pension design, Savings2022, Canada, Income

11FebFebruary 11, 2022

Extending pension policy in emerging Asia: An overlapping-generations model analysis for Indonesia

By George Kudrna, John Piggott & Phitawat Poonpolkul This paper examines the economy-wide effects of government policies to extend public pensions in emerging Asia - particularly pertinent given the region’s large informal sector and rapid population ageing. We first document stylized facts about Indonesia’s labour force, drawing on the Indonesian Family Life Survey (IFLS). This household survey is then used to calibrate micro behaviours in a stochastic, overlapping-generations (OLG) model with formal and informal labour. The benchmark model is calibrated...

February 11, 2022

Aging, Articles, Labor Market2022, Indonesia, Informal Sector

11FebFebruary 11, 2022

Reforming the Greek Pension System

By Daehaeng Kim, Alvar Kangur & Niki Kalavrezou The Greek pension system has been costly, complex, and distortive, which has contributed to Greece’s fiscal problems and discouraged labor force participation. Several attempts to reform the system faltered due to lack of implementation, pushback by vested interests, and court rulings leading to reversals. A series of reforms introduced throughout 2015–17 unified benefit and contribution rules, removed several distortions and reduced fragmentation and costs. If fully implemented throughout the long-term, these reforms...

February 11, 2022

Articles, Pension design, System Sustainability2022, Greece, Pension Reform

03FebFebruary 3, 2022

Do pensions have real teeth? Evidence from the state government borrowing costs

By Sumit Agarwal, Chunlin Liu, Qiyuan Peng, Qun Wu & Ting Zhang Yes, they do. State governments with risky defined benefit pension plans have higher borrowing costs, as measured by larger bond offering yield spreads. To control for the potential endogenous issue, we utilize the instruments of actuarial firms’ reputation, and direct flight between the state capital and actuarial firm headquarter. We further identify the relation between pension plan investment risks and borrowing costs using two quasi-experimental shocks: the introduction...

February 3, 2022

Articles, System Sustainability2022, Funding, Investment, Public Pensions, Risk

03FebFebruary 3, 2022

Target Date Funds and Portfolio Choice in 401(k) Plans

By Olivia S. Mitchell & Stephen P. Utkus Target date funds in corporate retirement plans grew from $5B in 2000 to $734B in 2018, partly because federal regulation sanctioned these as default investments in automatic enrollment plans. We show that adopters delegated pension investment decisions to fund managers selected by plan sponsors. Including these funds in retirement saving menus raised equity shares, boosted bond exposures, curtailed cash/company stock holdings, and reduced idiosyncratic risk. The adoption of low-cost target date funds...

February 3, 2022

Articles, Pension design2022, Investment, Pension Management, savings

28JanJanuary 28, 2022

Managing Misbehavior: Rational Choice in an Uncertain Retirement

By Rene Martel, Jennifer Gongola, sean klein, Avi Sharon Behavioral science has helped encourage better behaviors for many investors who are accumulating savings for retirement. This paper investigates the application of behavioral science to decumulation to help investors make better choices and maintain quality of life in retirement. We conducted a proprietary research study, collecting more than 750 responses from affluent and high-net-worth investors in the United States age 55 and older. The results identify key behavioral influences linked to...

January 28, 2022

Articles, Payout, Savings2022, Behavioral Science, Income, US

28JanJanuary 28, 2022

Financial Attitude and Pension Savings Among Informal Economy Workers in Ghana: Application of the Theory of Planned Behaviour

By Dominic Buer Boyetey, Francis Enu-Kwesi The Theory of Planned Behaviour (TPB) was applied to examine the financial attitude of informal economy workers in pension saving. This was against the background that informal economy workers were left out of formal pension schemes while micro pension schemes (MPS) remain as options that can guarantee economic security after retirement for people with the right financial attitudes. We used interview schedules and interview guides to collect quantitative and qualitative responses concurrently on key...

January 28, 2022

Articles2022, Behavioral Science, Ghana, Informal Sector

21JanJanuary 21, 2022

Is Demand for Older Workers Adjusting to an Aging Labor Force?

By Damir Cosic & C. Eugene Steuerle This paper analyzes the demand for older workers, their substitutability with younger workers, and how well the demand for older workers tracks changes in the age composition of the labor force. The main data source for the analysis is the Quarterly Workforce Indicators from 2000 to 2018, which provides earnings and employment by sector and metropolitan statistical area. The analysis also uses KLEMS national data to estimate the sector-specific price and quantity of...

January 21, 2022

Aging, Articles2021, Labor Market, Pension design

21JanJanuary 21, 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...

January 21, 2022

Articles, System Sustainability2022, China, Social Security

February 2022

Assessing Chile’s Pension System: Challenges and Reform Options

Low Demand for Reverse Mortgages in Canada: Price, Knowledge or Preferences?

Extending pension policy in emerging Asia: An overlapping-generations model analysis for Indonesia

Reforming the Greek Pension System

Do pensions have real teeth? Evidence from the state government borrowing costs

Target Date Funds and Portfolio Choice in 401(k) Plans

January 2022

Managing Misbehavior: Rational Choice in an Uncertain Retirement

Financial Attitude and Pension Savings Among Informal Economy Workers in Ghana: Application of the Theory of Planned Behaviour

Is Demand for Older Workers Adjusting to an Aging Labor Force?