We value your privacy

We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze our traffic. By clicking "Accept All", you consent to our use of cookies.

Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

June 2018

10Jun

Inheritances and Inequality across and within Generations

By Andrew Hood & Robert Joyce Today’s elderly have much more wealth to bequeath than their predecessors, primarily as the result of rising homeownership rates and rising house prices. At the same time, today’s young adults will find it harder to accumulate wealth of their own than previous generations did, due to the sharp fall in homeownership, the dramatic decline of defined benefit pensions in the private sector and the stagnation in household incomes. Together, these trends mean inherited wealth is...

June 10, 2018
Aging, Books, Labor Market, Savings, ,
Read more...

May 2018

27May

Insight into the Earned Income Tax Credit and Tax-Advantaged Retirement Savings

By David Rogofsky (Government of the United States of America - Office of Retirement Policy), Richard Chard (Government of the United States of America - Office of Research, Evaluation and Statistics), Joanne Yoong (Center for Economic and Social Research (CESR)) Saving for retirement has traditionally been compared to a three-legged stool supported by Social Security benefits, workplace pensions, and personal savings. As the prevalence of defined benefit pensions has diminished in recent decades, the importance of personal savings has grown....

May 27, 2018
Articles, Savings,
Read more...
07May

Designing Pension Systems with Coherent Funded Private Pillars Including Issues for Notional Defined Contribution Schemes

By William Joseph Price (World Bank) This paper reviews the factors that should guide the design of private funded pensions to create a complete pension system alongside a notional defined contribution -- or public -- component. It argues that a mix of public and private pensions is the most effective option to deliver the best combination of pension outcomes. Pension design should start with a vision for five core outcomes: coverage, adequacy, sustainability, efficiency, and security. Thinking through these outcomes...

May 7, 2018
Articles, Pension design, Savings,
Read more...

April 2018

25Apr

Do pension participants want the freedom to choose or the freedom to snooze?

By Hendrik P. van Dalen and Kène Henkens Individual freedom of choice is a much heralded and cherished principle in democracies. Milton Friedman and colleagues at his alma mater, the University of Chicago, made this a cornerstone of their belief (Friedman & Friedman, 1990). The freedom of choice is the antidote to excessive government interference and an instrument which enables people to realize their goals and discipline agents and organizations. The call for freedom is getting louder as individualization of...

April 25, 2018
Articles, Investing, OP Ed, Pension design, PPI’s original Op-Eds, Savings, Slider-Left, ,
Read more...
23Apr

Do People Really Want Freedom of Choice? Assessing Preferences of Pension Fund Participants

Reforms in private pension plans across the world are opening up more options for pension participants to make choices to suit their preferences. Freedom of choice is however not a unidimensional concept as it is commonly perceived by policy makers. People can value both the freedom to choose as well as the freedom not to choose This observation can have far-reaching implications for pension policy design. By using a unique panel survey among Dutch employees we are able to...

April 23, 2018
Articles, Labor Market, Pension design, Savings
Read more...
23Apr

Implications of Behavioural Economics for Mandatory Individual Account Pension Systems

By Waldo Tapia & Juan Yermo In individual account pension systems, members bear the risks and consequences of their investment decisions. If participants behave as predicted by economic theory, such responsibility would be welfare enhancing as members would invest and hold a portfolio of financial assets with a risk-return combination consistent with their investment horizon, degree of risk aversion and the portfolio of other assets they hold, including their human capital and, where relevant, their home. Behavioural economists and empirical...

April 23, 2018
Investing, Labor Market, Savings,
Read more...
23Apr

Active vs. Passive Decisions and Crowdout in Retirement Savings Accounts: Evidence from Denmark

By Raj Chetty, John N. Friedman, Soren Leth-Petersen, Torben Nielsen, Tore Olsen Using 41 million observations on savings for the population of Denmark, we show that the impacts of retirement savings policies on wealth accumulation depend on whether they change savings rates by active or passive choice. Subsidies for retirement accounts, which rely upon individuals to take an action to raise savings, primarily induce individuals to shift assets from taxable accounts to retirement accounts. We estimate that each $1 of...

April 23, 2018
Savings,
Read more...
23Apr

Retirement Drawdown Defaults: The Role of Implied Endorsement

By Jennifer Alonso-García (University of New South Wales (UNSW) - ARC Centre of Excellence in Population Ageing Research (CEPAR)), Hazel Bateman (University of New South Wales (UNSW) - School of Actuarial Studies, Centre for Pensions and Superannuation), Johan Bonekamp (Tilburg University - Department of Econometrics & Operations Research), Ralph Stevens (CPB Netherlands Bureau of Economic Policy Analysis; CEPAR) This paper explores whether implied endorsement can serve as an explanation for the stickiness of retirement drawdown defaults. Using an experimental survey...

April 23, 2018
Articles, Pension design, Savings, ,
Read more...
16Apr

Why Do Defaults Affect Behavior? Experimental Evidence from Afghanistan

By Joshua Blumenstock, Michael Callen, Tarek Ghani We report on an experiment examining why default options impact behavior. By randomly assigning employees to different varieties of a salary-linked savings account, we find that default enrollment increases participation by 40 percentage points—an effect equivalent to providing a 50% matching incentive. We then use a series of experimental interventions to differentiate between explanations for the default effect, which we conclude is driven largely by present-biased preferences and the cognitive cost of thinking...

April 16, 2018
Articles, Labor Market, Savings, ,
Read more...

March 2018

19Mar

When I’m Sixty-four: The Plot Against Pensions and the Plan to Save Them

By Teresa Ghilarducci A crisis is looming for baby boomers and anyone else who hopes to retire in the coming years. In When I'm Sixty-Four, Teresa Ghilarducci, the nation's leading authority on the economics of retirement, explains how to confront this crisis head-on, revealing the causes behind the increasingly precarious economics of old age in America and proposing a bold plan to guarantee retirement security for every working citizen. Retirement is one of the hallmarks of a prosperous, civilized market...

March 19, 2018
Books, Pension design, Savings, ,
Read more...
ar Arabiczh-CN Chinese (Simplified)en Englishfr Frenchde Germanpt Portugueseru Russianes Spanish
en English