February 2024
15Feb

UK. DWP has ‘no plans’ to raise frozen state pension payments for 500,000 expats, minister confirms

The Department for Work and Pensions (DWP) has “no plans” to raise frozen state pension payments for 500,000 Britons living abroad, a Government minister has confirmed. Pensions minister Paul Maynard told MPs the Government will not be introducing a “change to its longstanding policy”. Pensioners who retire overseas in certain countries, including Canada and New Zealand, have their payments frozen at the rate they were paid when they left the UK. An estimated 500,000 older Britons do not receive the full state pension entitlement they...

February 15, 2024
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02Feb

Gender Inequality Over the Life Cycle, Information Provision and Policy Preferences

By Alessandra Casarico, Jana Schuetz & Silke Uebelmesser We conduct a survey experiment with four thousand German respondents and provide information on two measures of gender inequality, separately or jointly: the gender gap in earnings and the gender gap in pensions. We analyze the effect of information provision on respondents’ views on the importance of reducing gender inequality and on their agreement with the adoption of policies targeted at different stages of the life cycle and aimed at reducing the...

February 2, 2024
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January 2024
29Jan

UK. Privately educated adults ‘more likely to have learned about pensions at school’

People who attended a private school are more likely to say they learned about pensions at school (20%) than those who were state-educated (6%), a survey has indicated. More than two-fifths (42%) of privately educated 35 to 44-year-olds said they reviewed or reassessed their pension pot at least once a year, compared with less than a fifth (17%) of state school-educated peers of the same age. Privately educated people were also more likely to hold private pensions outside of employment-linked pensions (40%),...

January 29, 2024
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19Jan

Inter-Generational Spillovers in Labor Supply: Evidence from a Danish Retirement Reform

By Malene C. F. Laczek In this paper, I study how the labor supply of one generation affects the next. Utilizing longitudinal Danish register data and a large retirement reform, I document that parents’ retirement significantly affects the labor supply of their adult children. This inter-generational link is driven solely by mothers. Concretely, mothers’ retirement permanently increases their adult children’s income rank by 7 income rank points, driven by increased hours worked, participation in the labor force, improved occupational rank,...

January 19, 2024
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15Jan

Egypt to increase minimum wages, pensions within two months: Official

Sabry added that this move aims to alleviate the impact of the global economic situation on the public, especially with the approach of the holy month of Ramadan. “This step aligns with President Abdel Fattah El-Sisi's directives to support citizens and alleviate their financial burdens, given the unprecedented rise in price levels and inflation,” Sabry added in a phone call with the Salet El-Tahrir TV show on Sada El-Balad channel. The anticipated wage increases will be the third in a year. Egypt’s headline...

January 15, 2024
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02Jan

How Gen Z is navigating the world of wealth

More than 50 percent of the world’s population is under the age of 30. But raging global inflation means most of Gen Z, born in the late 1990s to late 2010s, can barely afford to pay rent and food bills. However, Gen Z is starting to harness its increasing buying muscle (see Fig 1) and the way they view their financial choices is different to previous generations. So, who are Gen Z listening to and trusting? Dr Michael Harrison is...

January 2, 2024
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December 2023
20Dec

UK. DWP urges people buying State Pension top-ups to check uplift will be applied to payments first

New figures published by the UK Government show that at the end of March 2023, the number of people making voluntary National Insurance (NI) contributions to top-up their State Pension has surged by 85 per cent over the last year. The National Insurance Fund Accounts indicate that £391,973,000 worth of Class 3 NI contributions were made for the year ending March 31, compared to £212,311,000 paid in the previous year. However, the Department for Work and Pensions (DWP) is urging people thinking...

December 20, 2023
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15Dec

Retirement Trajectories and Social Security’s Retirement Earnings Test

By Bob Joondeph Chair, Nancy J. Altman, Jagadeesh Gokhale & Amy Shuart Social Security’s retirement earnings test (RET) temporarily withholds or reduces the Social Security benefits of people below full retirement age (FRA) who work and earn above a certain threshold while collecting retirement benefits. Those benefits are increased at FRA to account for the months when benefits were withheld or reduced under the RET. The legislative intent of the RET, which has been part of the law since Social...

December 15, 2023
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15Dec

Innovative Combo Product Design Embedding Variable Annuity and Long-Term Care Insurance Contracts

By Yang Shen, Michael Sherris, Yawei Wang & Jonathan Ziveyi This paper presents a novel combo insurance product design consisting of a variable annuity contract embedded with guaranteed minimum income benefits and long-term care insurance. This combo product provides enhanced benefits when the policyholder is functionally disabled. The Hamiltonian Monte Carlo simulation technique is utilised for numerically valuing the combo product whose underlying fund is proportionally invested in multiple asset classes. Product features including the elimination period and the maximum...

December 15, 2023
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15Dec

Annuities Are Back in Favour

"In an environment of high market volatility and high interest rates, life annuities are an option to consider again," says Spencer Look, director at the Morningstar Center of retirement and policy studies in Chicago. "Interest rates, he continues, are allowing annuity income levels not seen since the mid-2000s." The figures in Quebec confirm this, showing an increase of 17.7% between 2021 and 2022. Of the six main product categories listed in the 2022 Annual Report on Financial Institutions and Credit...

December 15, 2023
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