Pension design Archives - Page 30 of 60 - Pension Policy International

15FebFebruary 15, 2020

Ageing, Productivity and Employment Status

By Brindusa Anghel, Aitor Lacuesta The article analyses how labour market participation and the type of work performed change with age. Drawing on data from the OECD’s Programme for the International Assessment of Adult Competencies (PIAAC), it is documented that as people age they gradually lose certain skills relating to their ability to do physical work or use new technologies, or their literacy and numeracy skills. By contrast, as they build up experience, older workers develop better planning skills...

February 15, 2020

Articles, Pension design2020, Europe, Pension design, Spain

15FebFebruary 15, 2020

Death or Bust? The Risk with Post-Retirement Models: A Quantitative Evaluation

By Ross Pepperell, ,David Greenwood, Muhamed Alsharman The purpose of this report is to quantitatively evaluate whether commonly used models of asset returns pose a threat to the successful retirement of retirees. In doing so, we evaluate the whether the 4% ‘safe’ withdrawal rule holds with more realistic models of market behaviour. Our approach comprises a quantitative evaluation seven of the most common portfolio simulation approaches including: Simple analytic formula; Historical backtesting; Bootstrapping; Analytic Stochastic; Simple Monte Carlo; Filtered...

February 15, 2020

Articles, Pension designAging, Healthcare

15FebFebruary 15, 2020

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 15, 2020

Articles, Investment, Pension design2020, Adequacy, Payout, Replacement Rate

07FebFebruary 7, 2020

Pensions and Household Savings: Cross-Country Heterogeneity in Europe

By Anna d’Addio, Muriel Roger, Frederique Savignac We address the question of whether the heterogeneity in savings is partly due to differences in pension wealth across individuals and across countries, using a European harmonised wealth survey (HFCS) combined with estimates of pension wealth (OECD). First, we find significant displacement effects of mandatory pension wealth on non-pension financial wealth at the mean, and a statistically significant crowd-out estimate on the probability of owning real estate property. Second, there is heterogeneity...

February 7, 2020

Articles, Pension design, SavingsEurope, Labor Market

01FebFebruary 1, 2020

Reforming Pensions in Developing and Transition Countries (Social Policy in a Development Context)

By K. Hujo This book moves beyond technical studies of pension systems by addressing the political economy of pension reform in different contexts. It provides insights into key issues related to pension policy and its developmental implications, drawing on selected country studies in Africa, Asia, Eastern Europe, the Middle East, and Latin America. Get the book here

February 1, 2020

Books, Pension design, System Sustainability2014, Africa, Asia, Europe, Latin America, Pension Reform, Public Policy

31JanJanuary 31, 2020

Secure Retirement: Connecting Financial Theory and Human Behavior

By Jacques Lussier Investors fear return uncertainty and drawdowns associated with owning relatively risky asset classes, such as equity. The fact that greater risk is associated with greater expected return does not preclude the possibility that realized returns may be far less than a low-risk asset could provide, even with horizons as long as 5 to 10 years. Fear prompts the average investor to sometimes act against his own best interest. Therefore, the average investor’s portfolio often underperforms a...

January 31, 2020

Articles, Pension design, Savings2019, Behavioral Science, Political economy

24JanJanuary 24, 2020

OECD Reviews of Pension Systems: Portugal

By OECD This review provides policy recommendations on how to improve the Portuguese pension system, building on the OECD’s best practices in pension design. It details the Portuguese pension system and identifies its strengths and weaknesses based on cross-country comparisons. The Portuguese pension system consists of an old-age safety net, a pay-as-you-go defined benefit scheme and voluntary private savings. The safety net includes an old-age social pension and a complement (the so-called Complemento Solidário para Idosos or CSI), both...

January 24, 2020

Books, Pension design, System SustainabilityEurope, Portugal, Regulation

18JanJanuary 18, 2020

Risk and Equity Release Mortgages in the UK

By: Tripti Sharma, Declan French, Donal G. McKillop Accessing elderly housing wealth through equity release mortgages (ERMs) continue to be the focus of policy debates about how to pay for social care and how to support retirement incomes in the UK. We demonstrate in this paper that the spatial concentration of this market in just a few regions is not due to demand but to the risks faced by suppliers. We show that by ignoring regional variations in No Negative...

January 18, 2020

Adequacy, Articles, Pension design, Slider-Left2019, Income, System sustainability

10JanJanuary 10, 2020

Informality and the Challenge of Pension Adequacy: Outlook and Reform Options for Peru

By: Christoph Freudenberg, Frederik G Toscani Past reforms have put the Peruvian pension system on a largely fiscally sustainable path, but the system faces important challenges in providing adequate pension levels for a large share of the population. Using administrative microdata at the affiliate level, we project replacement rates in the defined benefit (DB) and defined contribution (DC) pillars over the next 30 years and simulate the impact of various reform scenarios on the average level and distribution of...

January 10, 2020

Books, Labor Market, Pension design

09JanJanuary 9, 2020

The World’s Best Places to Retire in 2020

“Where should I retire?” This is the question we hear most often at International Living, and every January we give you our most definitive answer in the form of our Annual Global Retirement Index. When it was first conceived, our Retirement Index was our special way of coping with an embarrassment of riches. At that stage, IL had already spent over a decade exploring all manner of dream locales. The result was a huge and exciting variety of choice and opportunity. Fast-forward to...

January 9, 2020

Books, Pension designAdequacy, Healthcare, Income, Social Security

February 2020

Ageing, Productivity and Employment Status

Death or Bust? The Risk with Post-Retirement Models: A Quantitative Evaluation

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

Pensions and Household Savings: Cross-Country Heterogeneity in Europe

Reforming Pensions in Developing and Transition Countries (Social Policy in a Development Context)

January 2020

Secure Retirement: Connecting Financial Theory and Human Behavior

OECD Reviews of Pension Systems: Portugal

Risk and Equity Release Mortgages in the UK

Informality and the Challenge of Pension Adequacy: Outlook and Reform Options for Peru