Pension design Archives - Page 24 of 60 - Pension Policy International

03DecDecember 3, 2020

An Assessment of Affordability and Impact of a Social Old Age Pension in Rwanda

By Jean Bosco Mbarute In low-income countries and middle-income countries, the coverage of contributory pension scheme is low and even stagnant. At the same time, older people are less able to rely on family and community support as a result of growing urbanization and migration. Then low-income workers and the poor simply cannot save enough to prepare for their old age. As a remedy, many countries are considering or have already implemented various forms of retirement income transfers aiming...

December 3, 2020

Articles, Pension design, System Sustainability2020, Adequacy, Africa, Coverage, Public Pensions, Rwanda

27NovNovember 27, 2020

Continuous-time Optimal Pension Indexing in Pay-as-You-Go Systems

By Oriol Roch Ageing population and economic crisis have placed pay-as-you-go pension systems in need of mechanisms to ensure its financial stability. In this paper, we consider optimal indexing of pensions as an instrument to cope with the financial imbalances typically found in these systems. Using dynamic programming techniques in a stochastic continuous-time framework, we compute the optimal pension index and portfolio strategy that best target indexing and liquidity objectives determined by the government. A numerical example is provided...

November 27, 2020

Articles, Pension designDefined Benefit, Public Pensions, Social Security

27NovNovember 27, 2020

Pension and Health Services Utilization: Evidence from Social Pension Expansion in China

By Shanquan Chen, Xi Chen, Stephen Law, Henry Lucas, Shenlan Tang, Qian Long, Lei Xue and Zheng Wang The proportion of people aged 60 years or over is growing faster than other age groups. The well-being older adults depend heavily on their state of health. This study evaluates the effects of pensions on older adults' health service utilization, and estimates the size of pension required to influence such utilization. Using a nationally representative survey, the China Health and Retirement...

November 27, 2020

Articles, Pension design, System Sustainability2020, Asia, China, Social Protection, Social Security

17NovNovember 17, 2020

Building Better Retirement Systems in the Wake of the Global Pandemic

By Olivia S. Mitchell In the wake of the global pandemic known as COVID-19, retirees, along with those hoping to retire someday, have been shocked into a new awareness of the need for better risk management tools to handle longevity and aging. This paper offers an assessment of the status quo prior to the spread of the coronavirus, evaluates how retirement systems are faring in the wake of the shock. Next we examine insurance and financial market products that may...

November 17, 2020

Articles, Pension design, System Sustainability2020, Aging, COVID-19, Fintech

12NovNovember 12, 2020

Factors Associated with the Ownership of Individual Retirement Accounts (IRAs): Applying the Theory of Planned Behavior

By Frank Magwegwe Despite the importance of retirement savings, many individuals retire with lack of adequate retirement savings. Applying the Theory of Planned Behavior, we developed a model in which psychological factors influence the calculation of retirement savings needs, which in turn influences the ownership of independent retirement accounts. The results showed that favorable attitudes, strong social norms, and perceived behavioral control are associated with calculating retirement savings needs. Also, calculating retirement savings needs as well as perceived behavioral...

November 12, 2020

Articles, Pension design, Savings2020, Adequacy, Behavioral Economics, US

05NovNovember 5, 2020

Pension Schemes in the European Union: Challenges and Implications from Macroeconomic and Financial Stability Perspectives

By Antonio Sánchez Serrano,Tuomas Peltonen Pension schemes have a significant influence on the saving and consumption decisions of households. Similarly, contributions to pension arrangements are substantial expenditures for national governments and also for corporations, depending on the prevailing pension system. Beyond this, pension schemes play an important role in the economy, channelling savings into investments through capital markets. However, demographic factors and the macroeconomic environment (low interest rates, low growth and low productivity) are raising concerns about the sustainability...

November 5, 2020

Articles, Pension design, System Sustainability2020, Europe

05NovNovember 5, 2020

Pension Superpowers and Financial Markets in the Sino-American Century

By M. Nicolas J. Firzli In this primer published in the Feb. 2020 issue of Private Debt Investor (PDI), Nicolas J. Firzli, World Pensions Council, looks at how institutional asset owners will come to the fore in the new geo-economic context defined by renewed Sino-American "coopetition" across ASEAN countries, Australia, Eastern Europe and the MENA area, Brexit and the resurgence of one-nation conservatism in Britain, the slow, relative decline of the European Union and the secular rise of "Pension...

November 5, 2020

Articles, Pension design2020, Pension Management, Private Pensions, Public Pensions

29OctOctober 29, 2020

Reconsidering Risk Aversion

By Daniel J. Benjamin, Mark Alan Fontana, Miles S. Kimball Risk aversion is typically inferred from real or hypothetical choices over risky lotteries, but such “untutored” choices may reflect mistakes rather than preferences. We develop a procedure to disentangle preferences from mistakes: after eliciting untutored choices, we confront participants with their choices that are inconsistent with expected-utility axioms (broken down enough to be self-evident) and allow them to reconsider their choices. We demonstrate this procedure via a survey about...

October 29, 2020

Articles, Pension design2020, Investment, Risk

29OctOctober 29, 2020

Life-Care Tontines

By Peter Hieber, Nathalie Lucas This paper builds on the advantage of pooling mortality and morbidity risks, and their inherent natural hedge. We focus on classical mutual risk pooling schemes, i.e. tontines, and introduce a ``life-care tontine", which in addition to retirement income targets the needs of long-term care coverage for an ageing population. This scheme reduces adverse selection costs and is actuarially fair at each time. Pooling heterogeneous risks (i.e. different age groups) is shown to reduce overall...

October 29, 2020

Articles, Investment, Pension designIncome, Payout, Risk

15OctOctober 15, 2020

The DC Future Book: In association with Columbia Threadneedle Investments

By Lauren Wilkinson, Daniela Silcock and John Adams Compared to previous generations of pensioners, current and future retirees will: • Live longer on average, • Receive their State Pension later, • Be more likely to be dependent on Defined Contribution (DC) savings, • Have no, or low, levels of Defined Benefit (DB) entitlement, and • Flexibly access their DC savings. These changes increase the risks borne by pension scheme members and the complexity of decisions people must make at and...

October 15, 2020

Books, Pension designDC schemes, Private Pensions, Public Pensions, UK

December 2020

An Assessment of Affordability and Impact of a Social Old Age Pension in Rwanda

November 2020

Building Better Retirement Systems in the Wake of the Global Pandemic

Factors Associated with the Ownership of Individual Retirement Accounts (IRAs): Applying the Theory of Planned Behavior

Pension Schemes in the European Union: Challenges and Implications from Macroeconomic and Financial Stability Perspectives

Pension Superpowers and Financial Markets in the Sino-American Century

October 2020

Reconsidering Risk Aversion

Life-Care Tontines

The DC Future Book: In association with Columbia Threadneedle Investments