Savings Archives - Page 13 of 31 - Pension Policy International

22FebFebruary 22, 2020

Financial incentives and retirement savings

By OECD Launched in 2014, this project is reviewing the cost effectiveness of tax and other financial incentives. It is assessing more efficient ways of using public money to increase savings for retirement, retirement income and replacement rates. The project is taking into account the distributional impact of various measures and will examine alternative means of encouraging saving in complementary private pension plans other than current tax advantages. The project addresses three key questions that interest policy makers: What the different fiscal...

February 22, 2020

Books, Books, Pension design, Savings, System Sustainability2015, Behavioral Economics

07FebFebruary 7, 2020

How Do Children Affect the Need to Save for Retirement?

By Andrew G. Biggs Children consume a substantial portion of a household’s income while living at home, but are usually financially independent by the time the parents reach retirement age. Relatively little attention has been paid to how children affect parents’ need to save for retirement. In this paper I use expenditure data from the Panel Study of Income Dynamics to construct life cycle expenditure patterns from households with children and childless households, comparing the two to gain insights...

February 7, 2020

Articles, Savings2019, Behavioral Science, US

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

Demography and Provisions for Retirement: The Pension Composition, a Behavioral Approach

By B.M.S. van Praag, J. Hop Pensions may be provided for in a modern society by a mix of several methods, namely by voluntary individual savings, mandatory fully-funded occupational pension systems, mandatory social security financed by pay-as-you-go, and old-fashioned hoarding in cash.Here, we call the specific mixture of the four systems the pension composition. We assume that individual workers decide on their own individual savings, that the fully-funded occupational system is decided upon by the age cohort of the...

February 1, 2020

Articles, Savings2020, Aging, Behavioral Science, Labor Market

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

03JanJanuary 3, 2020

Pension Actuarial Mathematics

By Philip Martin McCaulay This 40-page publication on pension actuarial mathematics covers topics such as (I) interest and mortality, (II) cost methods, (III) amortization and contributions, and (IV) Duration and Convexity. Part I on interest and mortality includes mortality rates and survival functions, the theory of interest, commutation functions, and life annuity factors. Part II on cost methods includes the Unit Credit (UC) Cost Method, the Projected Unit Credit (PUC) Cost Method, the Entry Age Normal (EAN) Cost Method,...

January 3, 2020

Books, Investment, Pension design, Savings2014, Pension Management

03JanJanuary 3, 2020

The Evolution of Fintech: A New Post-Crisis Paradigm?

By Douglas W. Arner, Janos Nathan Barberis, Ross P. Buckley “FinTech”, a contraction of “Financial technology”, refers to technology enabled financial solutions. It is often seen today as the new marriage of financial services and information technology. However, the interlinkage of finance and technology has a long history and has evolved over three distinct eras, during which finance and technology have evolved together: first in the analogue context then with a process of digitalization of finance from the late...

January 3, 2020

Articles, Pension design, Savings2015, Fintech

27DecDecember 27, 2019

Realistic Expectations and Limitations to Consumer-Facing Robo-tic Advisors

By Dirk Cotton, Neville Francis We present a benchmark life-cycle simulation model (RFSM) that incorporates the financial, demographic, and mortality positions of retired households. By adjusting several features we nest a specific type of consumer-facing (generic) robo model that attempts to minimize the user's workload by imputing key inputs. We calibrate both models under robo policies using the Health and Retirement data for our benchmark model and robo-imputed data for the Generic-Robo model. Our findings indicate that retirees using...

December 27, 2019

Articles, Investing, Pension design, Savings2019, Behavioral Economics, Technology

16DecDecember 16, 2019

Perceived Precautionary Savings Motives: Evidence from FinTech

By Francesco D'Acunto (Boston College), Thomas Rauter (University of Chicago - Booth School of Business), Christoph Scheuch (Vienna Graduate School of Finance; Vienna University of Economics and Business), Michael Weber (University of Chicago - Finance) We study the consumption response to the provision of credit lines to individuals that previously did not have access to credit combined with the possibility to elicit directly a large set of preferences, beliefs, and motives. As expected, users react to the availability of credit...

December 16, 2019

Articles, Investing, Savings2019, Fintech, Technology

29NovNovember 29, 2019

How Much Should the Poor Save for Retirement? Data and Simulations on Retirement Income Adequacy Among Low-Earning Households

By Andrew G. Biggs Both policymakers and members of the public are concerned regarding the adequacy of U.S. households’ retirement savings. In response, proposals have been made to expand Social Security benefits and to establish state government-run retirement plans for private sector employees. In both cases, the largest effects would be on low-earning households, who currently have low rates of retirement plan coverage and participation and who rely heavily upon Social Security benefits in retirement. However, there has been...

November 29, 2019

Articles, Pension design, Savings2019, Adequacy, Income, Public Policy, US

February 2020

Financial incentives and retirement savings

How Do Children Affect the Need to Save for Retirement?

Pensions and Household Savings: Cross-Country Heterogeneity in Europe

Demography and Provisions for Retirement: The Pension Composition, a Behavioral Approach

January 2020

Secure Retirement: Connecting Financial Theory and Human Behavior

Pension Actuarial Mathematics

The Evolution of Fintech: A New Post-Crisis Paradigm?

December 2019

Realistic Expectations and Limitations to Consumer-Facing Robo-tic Advisors

Perceived Precautionary Savings Motives: Evidence from FinTech

November 2019

How Much Should the Poor Save for Retirement? Data and Simulations on Retirement Income Adequacy Among Low-Earning Households