By Weiqiang Tan & Jingbo Wu This research uses data from the National Financial Capability Study to investigate how subjective financial literacy (FL) influences retirement planning behaviors. Through a probit model, we establish that subjective FL have significant positive effects on three common retirement planning behaviors. When analyzing how subjective FL affects retirement planning, we […]

By Burkhard Heer & Mark M. Trede We develop a medium-scale overlapping-generations model with endogenous labor supply and skill premium to study optimal income redistribution using progressive labor income taxes and pensions. The model is calibrated to the four countries USA, Great Britain, Italy and Germany which differ substantially in their tax and pension systems, […]

By Roland Rupprechter This paper examines the pension funds of the large industrial countries — with more than USD 68 trillion between them, the heaviest group of investors in the world. It compares how funded retirement provision is organised in the United States, in Japan and in Europe: how state, occupational and private provision differ, […]

A recent survey of more than 550 US employers by WTW has exposed an uncomfortable truth at the centre of defined contribution plan governance: a large majority of plan sponsors have no formal definition of what retirement readiness means for their workforce. “You can’t prove that your plan works if you haven’t defined what working […]

How much of your paycheck would a pension replace in retirement? Depending on the country, the answer ranges from more than 80% to less than 20%. This graphic ranks countries by their projected gross pension replacement rate, based on data from the OECD. The rate compares pension benefits with pre-retirement earnings, with both measured before […]

Staff at Ethical Forestry always knew when their bosses were around. Even though the business was on the top floor of a Bournemouth office block there was no mistaking their arrival. You could hear one of their “top of the range, flash cars” roaring into the parking area three storeys below, according to former staff […]

The greater use of collective pension vehicles, including collective defined contribution (CDC) schemes and pension superfunds, could improve saver outcomes and unlock more long-term productive investment in the UK, New Capital Consensus (NCC) has argued. In its new report, Redistributing the Risk Burden, the think tank said that the systematic transfer of investment risk from institutions […]