October 2018

22Oct

The Pivotal Role of Fairness: Which Consumers Like Annuities?

By Suzanne B. Shu (University of California, Los Angeles - Anderson School of Management), Robert Zeithammer (University of California, Los Angeles (UCLA) - Anderson School of Management), John W. Payne (Duke University - Marketing) Life annuities can be a valuable component of the decumulation stage of wealth during retirement. While economists argue that most retirees should annuitize, actual demand in the marketplace is low. We analyze data from two studies to determine how measurable individual differences among consumers affect their...

October 22, 2018
Articles, Pension design, System Sustainability, , ,
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August 2018

18Aug

The Relationship Between Financial Planner Use and Holding a Retirement Saving Goal: A Propensity Score Matching Analysis

By Kyoung Tae Kim (University of Alabama), Tae-Young Pak (University of Alabama), Su Hyun Shin (University of Alabama) & Sherman D. Hanna (Ohio State University (OSU)) It has been well established in the literature that financial advice leads to informed decision making and improved financial outcomes. However, there is limited evidence regarding the link between financial planner use and attitudes towards retirement saving. As financial planners provide comprehensive advice for the long-term benefits of clients, their clients may become more...

August 18, 2018
Aging, Articles, Labor Market, Pension design, Savings, ,
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18Aug

Corruption and Fraud in Financial Markets: Malpractice, Misconduct and Manipulation

By Professor Carol Alexander Identify and stop potential issues before they become finable offences Corruption and Fraud in Financial Markets offers financial industry professionals with a comprehensive study on malpractice, misconduct and manipulation. Chapters cover detection, prevention and regulation of corruption and fraud within different financial markets. Written by experts at the forefront of finance and risk management, this book details the many practices that bring potentially devastating consequences, including insider trading, price manipulation, bribery, false disclosure, volume manipulation, spoofing, options...

August 18, 2018
Books, Investing, Regulation, Supervision,
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09Aug

US. Here’s What Happens To Your 401(k) When You Leave Your Job

Let’s face it: Nowadays, most workers don’t stay in the same job or work for the same company for the duration of their careers. But what happens if you funded a 401(k) and then switch jobs, leave your company or get laid off? What happens to the money you accumulated when you move on? The important thing to know is you get to decide what happens to it. Here are some of your options, assuming you are too young to...

August 9, 2018
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08Aug

Annuity Puzzle: how products are designed matters

By Eduardo Rodríguez Montemayor PPI’s Editorial Board editorial@pensionpolicy.net Getting an annuity with our savings pot at the time of retirement is the only contract that guarantees periodic pension payments for life. Yet, few people do it when offered to option to do so. What explains this puzzle? An annuity is a financial contract that pays out a periodic amount for as long as the annuitant is alive, in exchange for an initial premium. Defined-contribution (DC) pension schemes usually make it voluntary to choose whether to buy an...

August 8, 2018
Articles, Investing, Labor Market, OP Ed, Pension design, PPI’s original Op-Eds, Slider-Left, , , ,
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03Aug

US. Would Universal Savings Accounts cannibalize retirement plan contributions?

In the coming days, Rep. Kevin Brady, R-TX, chair of the House Ways and Means Committee, is expected to circulate a discussion draft of a Tax Reform 2.0 bill with an eye to advancing a floor vote in the House this September. The bill is expected to include a provision creating Universal Savings Accounts, which would allow any American age 18 or older to invest after-tax dollars that could grow tax-free and be withdrawn for any purpose, at any time,...

August 3, 2018
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03Aug

Ireland. Using pension pots to buy homes makes sense – and will boost enrolment rate

Large numbers of Irish people are not saving for retirement, and the Government is taking the very sensible step of ensuring that, from 2022, workers are automatically enrolled into a pension plan. Anyone who wishes to opt out will be able to do so, but the hope is that most people will be gently nudged onto a path towards a decent standard of living in retirement. To minimise the numbers opting out, people must be convinced that pensions are genuinely attractive....

August 3, 2018
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02Aug

Georgia. Galt & Taggart developed Government Pension Fund Calculator

The calculator is based on a new pensions savings scheme of the government and allows defining the estimated pension. Specifically, any interested individual using the calculator can identify the savings amount over the specific period. The calculator is given on the Galt & Taggart official website. “By developing the calculator the Galt & Taggart team gave the possibility to the savings scheme participants to calculate their estimated accrued pension. We take into account almost all the nuances of the pension...

August 2, 2018
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01Aug

Japan. Behind the Scenes / Only 40% pay national pension premiums

With many people, including the self-employed, not paying into the national pension plan, the system is becoming increasingly hollowed out. The officially announced payment rate is in the 60 percent range, but the actual situation is worse. The risk is growing that many elderly people will only be able to receive a meager pension in the future. Up for 6 straight years The Health, Labor and Welfare Ministry announced in June that the national pension premium payment rate (see below) in...

August 1, 2018
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01Aug

UK. Calls for HMRC to scrap rule penalising parents’ pensions

The taxman is under pressure to ditch a rule that costs busy new parents thousands of pounds in state pension entitlement. Parents who have taken time out of work to raise their baby get just three months during the frantic first weeks of having a newborn to register for child benefits with HMRC, allowing them to continue to build up their state pension though they are not employed. Those who failed to do this have already missed out on as much...

August 1, 2018
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