Pension design Archives - Page 20 of 60 - Pension Policy International

08JulJuly 8, 2021

Remaking Retirement: Debt in an Aging Economy

By Olivia Mitchell & Annamaria Lusardi Around the world, people nearing and entering retirement are holding ever-greater levels of debt than in the past. This is not a benign situation, as many pre-retirees and retirees are stressed about their indebtedness. Moreover, this growth in debt among the older population may render retirees vulnerable to financial shocks, medical care bills, and changes in interest rates. Contributors to this volume explore key aspects of the rise in debt across older cohorts, drill down...

July 8, 2021

Books, Pension design2020, Adequacy, Financial Literacy, Income

08JulJuly 8, 2021

Pensions for Whom? Redistribution of Public Pension with an Endogenous Income-Longevity Gradient

By Frederik Bjørn Christensen, Frederik Læssøe Nielsen A vast literature on public pensions shows that pay-as-you-go schemes may be preferable to funded schemes despite arguments of return dominance. A heavily cited reason for this is redistribution. One aspect that is rarely considered, however, is that the positive correlation between income and longevity may mitigate or even reverse redistribution. Augmenting a standard, heterogeneous-agent life cycle model with endogenous survival, we conduct a positive experiment and show that pension policy might not...

July 8, 2021

Articles, Pension design2021, Public Pensions, Public Policy

08JulJuly 8, 2021

Delay the Pension Age or Adjust the Pension Benefit? Implications for Labor Supply and Individual Welfare in China

By Yuanyuan Deng, Hanming Fang, Katja Hanewald, Shang Wu We develop and calibrate a life-cycle model of labor supply and consumption to quantify the implications of alternative pension reforms on labor supply, individual welfare, and government budget for China’s basic old-age insurance program. We focus on urban males and distinguish low-skilled and high-skilled individuals, who differ in their preferences, health and labor income dynamics, and medical expense processes. We use the calibrated model to evaluate three potential pension reforms: (i)...

July 8, 2021

Aging, Articles, Labor Market, Pension design2021, Adequacy, China, DB Pensions, Income, Pension Reform, Retirement Age

02JulJuly 2, 2021

What would women’s pensions look like if there wasn’t a gender pay gap? The economic case for gender-inclusive, paid parental leave

By Pension Bee PensionBee’s vision is a world where everyone can look forward to a happy retirement. For this to happen, we all need good health, financial freedom, and social inclusion. Currently, an obstacle to achieving this financial freedom for all is a gender pension gap of up to almost 60%. Bold action is required to challenge this so that women can enjoy similar levels of wealth in retirement as men. This is particularly important as women tend to live longer...

July 2, 2021

Books, Labor Market, Pension design, Reports2021, Gender Gap, UK

24JunJune 24, 2021

Pension Incentives and Labor Supply: Evidence from the Introduction of Universal Old-Age Assistance in the UK

By Matthias Giesecke, Philipp Jaeger We study the labor supply implications of the Old-Age Pension Act (OPA) of 1908, which, for the first time, provided pensions to older people in the UK. Using recently released census data covering the entire population, we exploit variation at the newly created age-based eligibility threshold. Our results show a considerable and abrupt decline in labor force participation of 6.0 percentage points (13%) when older workers reach the eligibility age of 70. To mitigate the...

June 24, 2021

Articles, Pension design2021, Behavioral Science, savings

11JunJune 11, 2021

The Financial Times Guide to Wealth Management: How to plan, invest and protect your financial assets – The FT Guides

By Jason Butler The Financial Times Guide to Wealth Management is your comprehensive guide to achieving financial security and stability by planning, preserving and enhancing your wealth. As well as being fully updated throughout, it includes five new chapters on socially responsible and impact investing; property, land and woodlands; single premium investment bonds; non-trust structures and young people and money. Whether you're a beginner wanting an introduction to financial planning or an experienced investor looking to pass your wealth on...

June 11, 2021

Books, Investment, Pension design2014, Pension Management

11JunJune 11, 2021

Risk-Adjusted Valuation in the Worker’s Economic Decision Making

By Hangsuck Lee, Doojin Ryu, Jihoon Son We suggest an overlapping generations model incorporating the risk-adjusted valuation in a worker’s decision problem. The risk-adjusted probabilities allow risk-averse workers to place more weight on cash flows upon retirement when assessing lifetime income at present value. The risk-adjusted valuation is consistently applied to any non-financial asset, allowing them to be evaluated collectively or separately. We predict capital returns under demographic structure, consumption preference, and social security policy changes. Source: SSRN 282 views

June 11, 2021

Articles, Pension design2021, korea, Public Policy, Returns, Risk

04JunJune 4, 2021

Prefunded Pension Systems: Recent Developments

By Kristian Peter Niemietz From the mid-1990s to the onset of the financial crisis, prefunded pension systems, based on individual retirement savings accounts, were spreading around the world. The UK was initially a world leader in this, due to the system of contracting out, which had allowed people to opt out of part of the state pension scheme and save for their own pension instead. Since 2008, there has been a global U-turn. Private pension systems are now in retreat...

June 4, 2021

Articles, Pension design2021, Chile, DC Pensions, Private Pensions, UK

04JunJune 4, 2021

Strategy for the Mexican Pension System

By Gabriel Martinez The concepts of benefit adequacy and sustainability are used to lead the discussion to-wards holistic pension reform. The required strategic elements are presented, the reforms underpinning the existing pension system are reviewed, and the evolution of the main variables in a set of reference countries is detailed. The review to other countries serves to identify key points of discussion, lessons and innovative elements. Essential reform proposals are presented. Source: SSRN 280 views

June 4, 2021

Articles, Pension design, System Sustainability2021, Mexico, savings, Social Security

20MayMay 20, 2021

How Competitive Are Income Annuity Providers Over Time?

By David Blanchett, Michael S. Finke, Branislav Nikolic The 2019 SECURE Act provides safe harbor protections to employers who evaluate the costs of providing guaranteed income including gathering information on competing providers. Annuities can be more difficult to evaluate than mutual funds because annuity expenses can be opaque, financial strength matters, and insurer competitiveness can change over time. We find significant variation in the payout rates across providers over time. While the payout rankings of annuity companies (e.g., best to...

May 20, 2021

Articles, Pension design2021, Income, Payout, US

July 2021

Remaking Retirement: Debt in an Aging Economy

Pensions for Whom? Redistribution of Public Pension with an Endogenous Income-Longevity Gradient

Delay the Pension Age or Adjust the Pension Benefit? Implications for Labor Supply and Individual Welfare in China

What would women’s pensions look like if there wasn’t a gender pay gap? The economic case for gender-inclusive, paid parental leave

June 2021

Pension Incentives and Labor Supply: Evidence from the Introduction of Universal Old-Age Assistance in the UK

The Financial Times Guide to Wealth Management: How to plan, invest and protect your financial assets – The FT Guides

Risk-Adjusted Valuation in the Worker’s Economic Decision Making

Prefunded Pension Systems: Recent Developments

May 2021

How Competitive Are Income Annuity Providers Over Time?