Pension design Archives - Page 21 of 60 - Pension Policy International

13MayMay 13, 2021

Have scale effects on cost margins of pension fund investment portfolios disappeared?

By Jacob Antoon Bikker, Jeroen Meringa Investment costs of pension funds are crucial for their returns. Consolidation in the pension fund market proceeds continuously, often with cost savings as the main argument. Unused economies of scale in the pension fund investment costs, however, have declined over the years to values close to zero, except for the very small pension funds. This paper investigates investment economies of scale in the Netherlands and pays special attention to the non-linear relationship between investment...

May 13, 2021

Articles, Operation, Pension design, System Sustainability2021, Investment, Political economy, US

13MayMay 13, 2021

Integrating Social Insurance and Social Assistance Programs for the Future World of Labor

By Robert J. Palacios, David A. Robalino Given the prevalence of informal labor, most countries have combined contributory social insurance programs (pensions, unemployment benefits, and health insurance), with non-contributory insurance programs and several types of "safety nets." All of these programs involve different types of subsidies and taxes, sometimes implicit. Because of design problems and the lack of coordination/integration between programs, these subsidies/taxes tend to cause four problems: 1) they can reduce incentives to contribute to mandatory insurance programs and...

May 13, 2021

Articles, Labor Market, Pension design2020, Informal Sector, Social Security

29AprApril 29, 2021

What Explains Low Old-Age Income? Evidence from the Health and Retirement Study

By Olivia S. Mitchell, Robert L. Clark, Annamaria Lusardi We examine respondents in the Health and Retirement Study (HRS) to observe how their financial situations unfolded as they aged. We focus on low income older adults and follow them over time to identify the factors associated with having low income at baseline and thereafter. We find that (a) real income remained relatively stable as individuals approach and enter retirement, and progress through their retirement years, and (b) labor force participation...

April 29, 2021

Adequacy, Articles, Pension design, Savings2021, Income, Payout, Social Security, US

23AprApril 23, 2021

The Taxation of Pensions

By Robert Holzmann, John Piggott Policy makers and academic researchers have been preoccupied in recent decades with the design of pension schemes and effective pension system reform. Relatively little attention has been given to the taxation of pensions and, more broadly, the provision of retirement income. In this book, experts from a range of countries explore the interconnection. Their contributions are especially timely, given recent demographic and political developments including population aging that lengthens the time between contribution payment and...

April 23, 2021

Books, Pension design2018, Taxation, US

23AprApril 23, 2021

2021 Retirement Confidence Survey

By EBRI Greenwald Research The RCS is the longest-running survey of its kind, measuring worker and retiree confidence about retirement, and is conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research. The 2021 survey of 3,017 Americans was conducted online January 5 through January 25, 2021. All respondents were ages 25 or older. The survey included 1,507 workers and 1,510 retirees — which includes an oversample of roughly 500 completed surveys among Black Americans (252 workers and 253 retirees)...

April 23, 2021

Books, Pension design, ReportsCOVID-19, Investment, Labor Market, Saving

23AprApril 23, 2021

Combining Flexible Asset Allocation, Sustainable Withdrawals, and Deferred Annuities to provide an Adaptive Lifelong Investing Solution

By Anran Chen, Steven Haberman, Steve Thomas In this paper, we integrate investment decisions in the post-retirement decumulation period with that of the deferred annuity purchase to provide a lifetime decumulation solution. Based on Monte Carlo simulation and historical experience, we use the Perfect Withdrawal Rate (PWR) as a tool to make recommendations on withdrawal rates and asset allocations for different levels of risk preferences. We have a few potentially important findings. First, we illustrate how cheap it is to...

April 23, 2021

Articles, Investment, Pension design2021, Income, Longevity, Risk

15AprApril 15, 2021

Do Required Minimum Distribution 401(K) Rules Matter, and for Whom? Insights from a Lifecycle Model

By Vanya Horneff, Raimond Maurer, Olivia S. Mitchell Tax-qualified vehicles helped U.S. private-sector workers accumulate $25Tr in retirement assets. An often-overlooked important institutional feature shaping decumulations from these retirement plans is the “Required Minimum Distribution” (RMD) regulation, requiring retirees to withdraw a minimum fraction from their retirement accounts or pay excise taxes on withdrawal shortfalls. Our calibrated lifecycle model measures the impact of RMD rules on financial behavior of heterogeneous households during their worklives and retirement. We show that proposed...

April 15, 2021

Articles, Pension design, SavingsIncome, Taxation, US 2021

08AprApril 8, 2021

Pension systems in east Africa a deep dive

By World Bank Group Although the populations of the countries in East Africa are still young, there is a growing awareness among policy makers that they too will face the interlocking challenges of demographics and urbanization. The lesson learned from other regions is that policies need to be put in place now to ensure that pension systems are robust and affordable. So too, pension savings should be used to fund economic growth and development. Otherwise, we risk the fate of...

April 8, 2021

Books, Pension design, System Sustainability2019, Africa, Private Pensions, Public Pensions

01AprApril 1, 2021

Reference Points for Retirement Behavior: Evidence from German Pension Discontinuities

By Arthur Seibold This paper documents and analyzes an important and puzzling stylized fact about retirement behavior: the large concentration of job exits at specific ages. In Germany, almost 30% of workers retire precisely in the month when they reach one of three statutory retirement ages, although there is often no incentive or even a disincentive to retire at these thresholds. To study what can explain the concentration of retirements around statutory ages, I use novel administrative data covering the...

April 1, 2021

Aging, Articles, Pension design2019, Behavioral Economics, Germany, Income

01AprApril 1, 2021

Understanding Social Insurance: Risk and Value Pluralism in the Early British Welfare State

By Rachel Friedman This article seeks to make two contributions to the understanding of social insurance, a central policy tool of the modern welfare state. Focusing on Britain, it locates an important strand of theoretical support for early social insurance programs in antecedent developments in mathematical probability and statistics. While by no means the only source of support for social insurance, it argues that these philosophical developments were among the preconditions for the emergence of welfare policies. In addition, understanding...

April 1, 2021

Articles, Pension design, System Sustainability2021, Risk, Social Protection, Social Security, UK

May 2021

Have scale effects on cost margins of pension fund investment portfolios disappeared?

April 2021

The Taxation of Pensions

2021 Retirement Confidence Survey

Combining Flexible Asset Allocation, Sustainable Withdrawals, and Deferred Annuities to provide an Adaptive Lifelong Investing Solution

Do Required Minimum Distribution 401(K) Rules Matter, and for Whom? Insights from a Lifecycle Model

Pension systems in east Africa a deep dive

Reference Points for Retirement Behavior: Evidence from German Pension Discontinuities