January 2018

08Jan

Addressing Financial Illiteracy Through Financial Innovation: The Case for Goal-Specific Bonds the Embed Inflation and Compounding

By Arun Muralidhar (AlphaEngine Global Investment Solutions; George Washington University) Financial illiteracy is widespread and leads to bad financial decisions (high debt, insufficient savings). Individuals cannot answer basic questions about inflation, compounding, and diversification. While financial literacy can be enhanced, are individuals teachable, and if so, what should they be taught and how lasting is the training? Prof. Merton suggests that some individuals can only be helped with innovation; Prof. Richard Thaler has argued for making the financial system more...

January 8, 2018
Articles, Investing, Labor Market, Savings, Slider-Left, ,
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December 2017

30Dec

How to Invest and Spend Wealth in Retirement? A Utility-Based Analysis

By Servaas van Bilsen (University of Amsterdam), A. Lans Bovenberg (Tilburg University - Center for Economic Research (CentER); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research)) & Roger J. A. Laeven (University of Amsterdam - Amsterdam School of Economics) This paper explores the optimal consumption and investment behavior of a retiree who derives utility from the ratio between consumption and an endogenous habit. By developing a non-trivial linearization to the budget...

December 30, 2017
Articles, Investing, Savings, , ,
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18Dec

Behavioral Impediments to Valuing Annuities: Evidence on the Effects of Complexity and Choice Bracketing

By Jeffrey R. Brown, Arie Kapteyn, Erzo F.P. Luttmer, Olivia S. Mitchell & Anya Samek This paper examines two behavioral factors that diminish people’s ability to value a lifetime income stream or annuity, drawing on a survey of about 4,000 adults in a U.S. nationally representative sample. Our first main finding is that experimentally increasing the complexity of the annuity choice reduces respondents’ ability to value the annuity. We measure lack of ability to value an annuity by the difference...

December 18, 2017
Aging, Articles, Savings, Slider-Left, , ,
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November 2017

28Nov

As good as it gets? The adequacy of retirement income for current and future generations of pensioners

By David Finch & Laura Gardiner (Resolution Foundation) Recent strong growth in the incomes of pensioner households and reductions in pensioner poverty are to be welcomed. But set against much weaker incomes for working age households and the challenges younger generations are facing in accumulating wealth, anxiety is building that these outcomes may not be sustained for future generations of retirees. Their prospects are particularly uncertain given both the big shifts in pensions policy currently in train and the fiscal...

November 28, 2017
Aging, Labor Market, Savings, Slider-Left, ,
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20Nov

The Rising Longevity Gap by Lifetime Earnings – Distributional Implications for the Pension System

By Peter Haan (DIW Berlin), Daniel Kemptner (DIW Berlin), Holger Lüthen (DIW Berlin) This study uses German social security records to provide novel evidence about the heterogeneity in life expectancy by lifetime earnings and, additionally, documents the distributional implications of this earnings-related heterogeneity. We find a strong association between lifetime earnings and life expectancy at age 65 and show that the longevity gap is increasing across cohorts. For West German men born 1926-28, the longevity gap between top and bottom...

November 20, 2017
Aging, Articles, Labor Market, Savings, Slider-Left, Uncategorized, ,
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October 2017

25Oct

Pensiones a la chilena

por Andrés Solimano Hasta hace poco el tema de las pensiones en Chile pertenecía al ámbito del pequeño grupo que define las políticas públicas en nuestro país, dominado por economistas y sujeto a la fuerte influencia del poderoso gremio de las AFP (Administradoras de Fondos de Pensiones). Sin embargo, desde 2016 el tema pasó de las elites a las masas y se tomó las calles. Consiguió generar un debate nacional y puso en agenda prioritaria el desafío de diseñar un...

October 25, 2017
Books, Regulation, Savings, Supervision, , , ,
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20Oct

Homeownership, Social Insurance, and Old-Age Security in the United States and Europe

By Stipica Mudrazija & Barbara A. Butrica (The Urban Institute) Relatively few Americans have accumulated substantial savings outside of their employer-sponsored retirement plans, yet most own their homes. The traditional view of the retirement income system as a three-legged stool supported by Social Security, private pensions, and savings may be better viewed as being supported by Social Security, pensions, and homeownership. Country-specific economic, social, and political developments throughout modern history mean that homeownership rates and the relative importance of homeownership for...

October 20, 2017
Aging, Articles, Investing, Savings, Slider-Left, , ,
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20Oct

Expanding Canada Pension Plan Retirement Benefits: Assessing Big CPP Proposals

By Jonathan Rhys Kesselman (Simon Fraser University School of Public Policy) Current and growing deficiencies in many workers’ ability to maintain their accustomed living standards in retirement have evoked varied proposals for reform of Canada’s retirement income system. This study focuses on proposals for expanding the retirement benefits of the Canada Pension Plan (CPP), and undertakes comparative analysis with proposals for reforms affecting workplace pensions and individual savings. It begins by reviewing key policy questions for the retirement income system...

October 20, 2017
Articles, Corporate Governance, Pension design, Savings, ,
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16Oct

Planning for Retirement? The Importance of Time Preferences

By Robert L. Clark, Robert G. Hammond, Christelle Khalaf, Melinda Sandler Morrill Ensuring retirement income security is a priority for individuals, employers, and policymakers. Using merged administrative and survey data for public sector workers in North Carolina, we explore how workers’ characteristics and preferences are associated with planning and saving for retirement. We then assess the “quality” of a retirement plan and whether retirement behavior is consistent with these plans. The findings indicate that the way that individuals discount future...

October 16, 2017
Aging, Articles, Pension design, Savings
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09Oct

Saving the Next Billion from Old Age Poverty. Global Lessons for Local Action

This Book Project is the first of a series of initiatives by pinBox to jumpstart a global dialogue and collaborative action on pension inclusion across Asia, Africa and Latin America. The Book presents the policy outlook, past efforts and planned interventions by several developing countries as well as thematic chapters on the key principles and issues in design and implementation of inclusive pension arrangements. This book was realeased on October 12 on the pinBox Digital Micro-Pension Inclusion Roundtable 2017 For more information...

October 9, 2017
Adequacy, Aging, Articles, Books, Corporate Governance, Funding, Investing, Labor Market, Management, News, Pension design, Regulation, Savings, Slider, Supervision, System Sustainability
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