October 2024
25Oct

2024 Defined Contribution Pension and Savings Report

By Stuart Arnold & Claire Murray This year’s survey reveals the immediate focus and priorities that employers, plan sponsors and pension trustees have for their defined contribution (DC) retirement plans. In this edition, in response to the growing concern surrounding retirement adequacy, we look at the views and actions of employers concerning the outcomes that employees can expect from their retirement provision. What are the main priorities for employers in retirement provision, what steps are sponsors taking, and what opportunities should...

October 25, 2024
Books, Books, Reports, System Characterization, , ,
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25Oct

Well-Being of Older People in East Asia: The People’s Republic of China, Japan, and the Republic of Korea

By Hidehiko Ichimura, Xiaoyan Lei, Chulhee Lee, Jinkook Lee, Albert Park, & Yasuyuki Sawada East Asia is undergoing a rapid demographic transition and “super” aging. As a result of steadily decreasing fertility and increasing life expectancy, older people’s proportion of the population and the old-age dependency ratio is rising across all countries in East Asia, particularly in the People’s Republic of China (PRC), Japan, and the Republic of Korea (ROK). In this paper, we empirically investigate the well-being of older...

October 25, 2024
Aging, Articles, , , , ,
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25Oct

Beyond Informal Employment: Stagnation and Disguised Employment in Brazil

By Carolina Troncoso Baltar, Esther Dweck, Marilia Marcato & Camila Unis Krepsky This study analyses the Brazilian labour market from 2014 to 2019, focusing on the impact of the country's growth pattern on rising informal and self-employment. After a period of economic growth, Brazil faced a recession (2015-2016) and stagnation (2016-2019). Austerity-driven reforms were implemented, weakening policies aimed at stimulating growth, reducing unemployment, and improving formalization. Using structural decomposition analysis within a demand-driven input-output model, the study examines how changes in demand...

October 25, 2024
Articles, Labor Market, , ,
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25Oct

Pensions in Aging Asia and the Pacific: Policy Insights and Priorities

By Rafal Chomik, Philip O’Keefe & John Piggott Asia and the Pacific has the most diverse regional pension landscape globally. Yet the region’s pension systems are facing common challenges as they attempt to expand coverage, and ensure adequacy and fairness, while maintaining fiscal sustainability. We review the structures and performance of pension systems across Asia and the Pacific. Most remain characterized by low contributory coverage, social pensions with inadequate benefits and often low (or no) coverage, and informal sector schemes...

October 25, 2024
Articles, System Characterization, , , ,
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18Oct

SEC Investigations of Public Pensions

By Kangkang Zhang In recent years, the looming threat of substantial unfunded liabilities and the obligation to meet these financial commitments have become critical issues for numerous state pension plans, prompting concerns about their solvency and management. This study examines the effect on public pension plans of investigations by the U.S. Securities and Exchange Commission (SEC). Utilizing a stacked cohort difference-in-differences design, I observe that state pensions tend to improve investment performance when subjected to SEC investigation. The observed effect...

October 18, 2024
Articles, Supervision, Supervision, , , ,
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18Oct

Parametric Pension Reform Options in Korea

By Daniel Baksa, Boele Bonthuis, Si Guo & Zsuzsa Munkacsi Population aging in Korea will pose substantial challenges to the financial sustainability of its public pension system. Under current policies and plausible assumptions, public pension spending can increase by as much as 4 percent of GDP during 2020-70, while contribution revenue will largely stay constant. This expected rise in public pension spending mainly reflects the increase in the old-age dependency ratio (and therefore the number of pension recipients), the deceleration...

October 18, 2024
Articles, System Sustainability, , ,
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18Oct

The Impact of Lump-Sum Retirement Withdrawals on Labor Supply: Evidence from Peru

By Carla Moreno & Sita Slavov  We examine the labor supply impact of a 2016 policy that allows retirementeligible individuals covered by Peru’s private pension system to receive retirement benefits as a lump sum rather than as an annuity. We present a theoretical model predicting that, for liquidity constrained workers, the lump sum option makes formal employment (requiring pension participation) more attractive relative to informal employment (not requiring pension participation); it also encourages early retirement. Using household panel data, we...

October 18, 2024
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17Oct

Gobierno de México lanza la reforma para regular los derechos laborales para los repartidores por aplicación

El gran negocio de la entrega de alimentos y productos a través de aplicaciones móviles comienza a ser regulado en México. El Gobierno de Claudia Sheinbaum ha firmado este miércoles las modificaciones a la Ley Federal del Trabajo para regular las actividades de alrededor de 658.000 repartidores que laboran en plataformas digitales. El secretario de Trabajo y Previsión Social, Marath Baruch Bolaños López, informó que, entre los cambios presentados en un proyecto que será revisado por la Cámara de...

October 17, 2024
Noticias, Noticias, , , ,
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16Oct

Informe mensual del comportamiento de la economía. Marzo 2024

Por Comisión Nacional de los Salarios Mínimos Para 2024 el Consejo de Representantes fijó los salarios mínimos en 374.89 pesos diarios en la Zona Libre de la Frontera Norte (ZLFN) y 248.93 pesos diarios en el resto del país. En términos reales, ambas zonas salariales presentaron en febrero una recuperación del poder adquisitivo de 14.9% anual. La inflación muestra una disminución paulatina, aunque continúa por arriba del nivel objetivo del Banco de México. En febrero, el Índice Nacional de Precios...

October 16, 2024
Caracterización del Sistema, Libros, Libros, Reportes, , , , ,
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11Oct

Rules of Thumb and Retirement Accounts

By Vanya Horneff, David A. Love & Raimond Maurer We examine the welfare costs of applying common rules of thumb for saving, investment, 401k contributions, and withdrawals in an environment that includes a realistic treatment of taxation, Social Security benefits, 401k-plan details, and uncertainty in income, longevity, and asset returns. We test the performance of commonly recommended rules, such as investing 100-minus-age percent of assets in stocks, contributing 6–10% of income to a 401k account, or withdrawing the required minimum...

October 11, 2024
Articles, Pension design, ,
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