Pension design Archives - Page 7 of 60 - Pension Policy International

08DecDecember 8, 2023

Household Financial Literacy and Retirement Planning in Rural China

By Yuting Qian, Weiqiang Tan & Jingbo Wu Rural villager’s retirement is an essential issue in China. This study investigates the level of financial literacy of rural residents and its relationship with retirement planning. In-depth survey data of rural residents in the Greater Bay Area reveal that rural residents with different demographic structures have different levels of financial literacy. The empirical study finds that financial literacy is positively related to retirement planning, and this result is robust. Further research shows...

December 8, 2023

Articles, Pension design2023, China, Financial Literacy, Retirement Planning

01DecDecember 1, 2023

Subjective survival beliefs and the life-cycle model

By Seung Yeon Jeong, Iqbal Owadally, Steven Haberman & Douglas Wright Evidence from panel surveys of households, collected over several years and in different countries, shows that people’s perception about their remaining lifetime deviates from actuarial data. This has consequences for consumption, savings and investment over an individual’s financial life cycle, and in particular for retirement planning and the purchase of annuities. We use data from the U.S. Survey of Consumer Finances to estimate subjective survival probabilities at different ages....

December 1, 2023

Articles, Pension design2023, Investment, Longevity, Pension Payout

24NovNovember 24, 2023

Retirement Planning: The Volatility-Adjusted Coverage Ratio

By Javier Estrada The important decisions that retirees have to make to try to achieve their financial goals during retirement often stem from models used by financial planners. Despite the important role it plays in many of those models, the failure rate has several limitations and many alternatives have been proposed. This article introduces a new metric, the volatility-adjusted coverage ratio, which incorporates the benefit (the coverage ratio) and the cost (the volatility of the portfolio) of the strategies considered....

November 24, 2023

Articles, Pension design2023, Investment, Retirement Planning

17NovNovember 17, 2023

AI and Retirement – How It Will Affect Your Retirement Savings

By Carolyn Young Artificial Intelligence (AI) is impacting humans more than any of us realize. It’s being used by marketers to gain customer insights, by manufacturers to automate processes, and by many businesses to analyze data and improve efficiency. AI’s ability to rapidly analyze large amounts of data has also given it a huge role in the financial industry, and thus can impact your retirement savings in a variety of ways. In fact, AI is being used most by the banking...

November 17, 2023

Articles, Pension design2023, AI, Pension design, Pension Management, Technology

27OctOctober 27, 2023

From PEPP to Corona: European Aspects of the Dutch Pension System

By Hans van Meerten In this contribution, I will address some salient points in the Dutch and European pension landscape. For instance, the state of affairs anno 2023 regarding the WTP and the 'EU Pension Union' (EPU) will be addressed. What developments are there and do they actually bring the signalled EPU (in 2015) closer or further away? In doing so, I would like to address two topics specifically: the internal market for pensions and developments regarding the Corona pandemic,...

October 27, 2023

Articles, Pension design2023, EU, Innovation

27OctOctober 27, 2023

Time Consistency in Optimal Retirement Planning

By Frank Bosserhoff, An Chen & Manuel Rach We study time consistency in optimal consumption problems of annuities and tontines. We find the annuity problem to be time-consistent, hence delivering the same optimal consumption at each time. The tontine problem, however, is found to be time-inconsistent, opening the possibility for individuals to increase or decrease their overall expected utility by changing the ex ante fixed consumption profile. However, such an increase in the utility of the tontine cannot lead to...

October 27, 2023

Articles, Pension design2023, Pension Payout, Retirement Planning

06OctOctober 6, 2023

Asian Retirement Markets 2023: Building Security Against Uncertainty

By Shaun Ng As Asia’s retirement pension funds evaluate the funding status for the many approaching their golden years, alternative investments offer diversification and returns. Major pension funds in Asia have been diversifying further into alternatives, driven by the need to deliver solid returns and combat inflationary pressures as they face a looming underfunding crisis. However, nearly 41% of Asian pensions surveyed by Cerulli cite a “limited understanding” of alternatives, while one-third say they lack in-house expertise when investing in alternatives....

October 6, 2023

Books, Books, Pension design, Reports2023, Asia, Investment, Pension Management

15SepSeptember 15, 2023

Welfare Analysis of Housing in the Presence of Interest Rate Risk

By Servaas van Bilsen, Theo Nijman & Emiliana van Erk We model the welfare losses of (i) the presence of a mortgage with required repayments, (ii) a minimum pension savings constraint, and (iii) imposing a suboptimal investment strategy. We develop a life-cycle model which considers housing and interest rate risk. For a reasonable set of parameter values, we find welfare losses of up to 2.41% (5.02%) if a homeowner with a 30-year fixed-rate (adjustable-rate) mortgage faces a minimum savings constraint of...

September 15, 2023

Articles, Pension design2023, Interest rate, Investment, Risk

15SepSeptember 15, 2023

Solving the Puzzle within the Annuity Puzzle: Incorporating Irrevocability Aversion into Annuity Choice

By Spencer Look, Tao Guo & Yuanshan Cheng Researchers have found that annuities provide substantial benefits to retirement investors. Income annuities, which require the purchaser to irrevocably exchange an insurance premium for future income, are typically considered the most efficient vehicle to generate lifetime income. However, the Life Insurance Marketing and Research Association (“LIMRA”) estimated that the actual sales of income annuities only accounted for 12% of income-focused annuity sales (LIMRA, 2022a). Most of the sales are attributable to deferred...

September 15, 2023

Articles, Pension design2023, Income, Pension Payout, Retirement Planning

08SepSeptember 8, 2023

Extending contribution-based social security schemes for workers in the informal economy and self- employed in Nepal

By International Labour Organization This brief was prepared by André F. Bongestabs and Suravi Bhandary based on the technical note produced by Pierre Plamondon, Senior Actuary, with the support of ILO’s Actuarial Services Unit, as part of the technical support provided by the ILO to the Social Security Fund of Nepal. The brief discusses various considerations that needs to be placed during the design and implementation of contribution-based social security for workers in the informal economy and self-employment. It is...

September 8, 2023

Books, Books, Pension design, Reports2023, Coverage, Informal Sector, Labor Market

December 2023

Household Financial Literacy and Retirement Planning in Rural China

Subjective survival beliefs and the life-cycle model

November 2023

Retirement Planning: The Volatility-Adjusted Coverage Ratio

AI and Retirement – How It Will Affect Your Retirement Savings

October 2023

From PEPP to Corona: European Aspects of the Dutch Pension System

Time Consistency in Optimal Retirement Planning

Asian Retirement Markets 2023: Building Security Against Uncertainty

September 2023

Welfare Analysis of Housing in the Presence of Interest Rate Risk

Solving the Puzzle within the Annuity Puzzle: Incorporating Irrevocability Aversion into Annuity Choice

Extending contribution-based social security schemes for workers in the informal economy and self- employed in Nepal