What does the chart show? The disposable incomes of pensioners aged 65 to 74 after direct taxes are likely to increase by 1.9 per cent a year over the next 10 years — to give an average annual income of £41,500. However, with the average weekly cost of nursing care for self-funders at £1,035, the majority of retired households requiring these services cannot afford to pay the annual fees of £53,820 out of their income, according to research by Irwin...
The aim of this anthology is to provide new contributions to the collective knowledge of the issues and challenges of designing mandated and earnings-related universal public pension schemes (UPPS), in which a universal public nonfinancial defined contribution (NDC) scheme is one of four design options. In 1994, Nonfinancial Defined Contribution (NDC) Pension Schemes left the crib and was taking its first steps in Sweden, Italy, and Latvia. A couple of years later a fourth sibling was born in Poland, with...
By Julien Albertini, Xavier Fairise, Anthony Terriau How do labor market and health outcomes interact over the life cycle in a country characterized by a large informal sector and strong inequalities? To quantify the effects of bad health on labor market trajectories, wealth, and consumption, we develop a life-cycle heterogeneous agents model with a formal and an informal sector. We estimate our model using data from the National Income Dynamics Study, the first nationally representative panel study in South Africa. We...
By Ross Pepperell, ,David Greenwood, Muhamed Alsharman The purpose of this report is to quantitatively evaluate whether commonly used models of asset returns pose a threat to the successful retirement of retirees. In doing so, we evaluate the whether the 4% ‘safe’ withdrawal rule holds with more realistic models of market behaviour. Our approach comprises a quantitative evaluation seven of the most common portfolio simulation approaches including: Simple analytic formula; Historical backtesting; Bootstrapping; Analytic Stochastic; Simple Monte Carlo; Filtered...
By Binjian Yan, Xi Chen, Thomas M. Gill This paper examines the extent to which childhood circumstances contribute to health inequality in old age and how the contributions may vary across key dimensions of health. We link the China Health and Retirement Longitudinal Study (CHARLS) in 2013 and 2015 with its Life History Survey in 2014 to quantify health inequality due to childhood circumstances for which they have little control. We evaluate comprehensive dimensions of health ranging from cognitive...
By: Jose Escarce, Lorenzo Rocco To our knowledge, no study has examined the effect of immigration on the health of older natives. We use the Study of Health, Ageing and Retirement in Europe (SHARE) to investigate whether immigration affects depression among natives 65-80 years old. Immigration may increase the supply and lower the price of personal and household services, a term that refers to care services and non-care services such as cleaning, meal preparation, and domestic chores. Higher consumption...
“Where should I retire?” This is the question we hear most often at International Living, and every January we give you our most definitive answer in the form of our Annual Global Retirement Index. When it was first conceived, our Retirement Index was our special way of coping with an embarrassment of riches. At that stage, IL had already spent over a decade exploring all manner of dream locales. The result was a huge and exciting variety of choice and opportunity. Fast-forward to...
By World Bank Group Publications, World Bank Group, World Bank, Heath Rachel, Mansuri Ghazala, Rijkers Bob Workers in developing countries are subject to frequent health shocks. Using 10 weeks of high-frequency labor market data that were collected in urban Ghana, this paper documents that men are 9 percentage points more likely to work in weeks in which another worker in the household is unexpectedly ill. The paper provides suggestive evidence that these effects are strongest among very risk averse...
People over 50 are the fastest growing demographic group worldwide. This creates both opportunities and challenges for the global economy and healthcare systems. The Longevity Industry, which provides products and services for those aged over 50 is becoming a multi-trillion-dollar industry. There are currently 260 companies, 250 investors, 10 non-profits, and 10 research labs in the Longevity Industry in the UK alone. In the next decade, Longevity policies enacted by governments, and changes in the financial industry will transform...
Life expectancy in Switzerland has been growing steadily for decades. But have these additional years been spent in good health or, on the contrary, do they only prolong the ills of an aging population? In an attempt to answer this question, researchers from the University of Geneva (UNIGE), Switzerland, collated data from the Swiss National Cohort (SNC) and the Swiss Health Surveys between 1990 and 2015, all within the framework of the "LIVES" National Centre of Competence in Research...
