January 2021
04Jan

There is no escape from late retirement

European countries face the challenge of the economic and social consequences of an aging population. In particular, pension systems have to adapt to the changes taking place, maintaining, on the one hand, the financial stability related to the balancing of contributions receipts and pension expenditure, and at the same time the adequacy of benefits related to the protection of pensioners from poverty and the provision of an adequate income after leaving employment. One of the key instruments...

January 4, 2021
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04Jan

Why the U.S. needs a national climate investment fund

In recent weeks, we have witnessed the power of innovation to solve catastrophic problems. Most notably, we have seen the extraordinary human accomplishment of delivering vaccines within a year to counter the novel coronavirus, COVID-19—an achievement that was accelerated by the U.S. government’s Project Warp Speed.  What many people may be less aware of is that across America and other global innovation centers, companies are striving to harness that same power to tackle climate change. Businesses of all sizes are toiling away...

January 4, 2021
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04Jan

China faces its biggest transformation to date

An ageing population, overreliance on investment and the shifting geopolitical landscape are key challenges as the Asian giant shifts gears, says David Dollar. China’s well-known story of spectacular growth, at around 10 per cent annually for 40 years, is coming to an end because of both domestic and global factors. In analysing China’s prospects for the next several decades, three particular challenges are striking: The shift from a labour-surplus to a labour-scarce society; the shift from investment to innovation as the...

January 4, 2021
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04Jan

Global investors hungry for A-shares despite tensions

China's healthy economy and expanding equities market is drawing more eyes from across the world. Australian superannuation funds, in particular, are looking to invest more. For the past two decades Chinese investors have been eager to sample the broadening array of morsels available in the country’s rapidly growing equity market. Now, more foreign asset owners are looking to join the feast, with some of Australia's superannuation funds leading the way, despite deteriorating relations between Beijing and Canberra....

January 4, 2021
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04Jan

US. Worried about retirement? Jump down ‘one of the darkest rabbit holes’ and you’ll find plenty of company

It’s ugly — and getting uglier — for retirement hopefuls these days. Just look at the data. Median household savings for Gen X, according to a recent study, is $64,000, and 81% of that cohort are worried about being able to fund their golden years. Coronavirus is making it worse, of course. Millennials, who have increasingly dipped into retirement funds to deal with the pandemic, have an average nest egg of just $23,000. Numbers aside, for an even more unsettling sense of...

January 4, 2021
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January 2021
01Jan

The Shift to a Funded Social Security System: The Case of Argentina

By Joaquin Cottani & Gustavo Demarco The Argentine social security system has been modified a number of times since its creation in 1904. The pay-as-you-go system was adopted in 1954. The reform of 1969 established the system’s definitive structure, which remained substantially unchanged for more than twenty years. However, the system’s underlying financial problems led the government to undertake an integral reform of its social security program in 1993. The government adopted a mixed system by introducing private pensions into...

January 1, 2021
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01Jan

Supervising mandatory funded pension systems: issues and challenges

By Gustavo Demarco, Rafae Rofman, & Edward Whitehouse The regulation and supervision of pension funds is a critical part of building public confidence in a funded-pension system. This paper argues that confidence is best bolstered by an independent, autonomous and transparent supervision agency, particularly when previous systems had failed. The choice between proactive and reactive supervision depends on previous experience of selfregulation in a country’s financial sector. The paper examines four key areas of supervision in detail: institutional, financial, membership and...

January 1, 2021
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01Jan

Collecting and transferring pension contributions

By Rafael Rofman & Gustavo Demarco Collecting social security contributions is an important operational issue in all types of pension systems. Many regimes are plagued by poor compliance and weak, inefficient administration. Some countries have tried to introduce an automatic incentive to contribute by moving systems closer to"actuarial fairness,"where pension benefits are more strictly related to individual contributions. Examples include the systems of individual accounts introduced in a range of countries in Latin America and Eastern Europe. But in these...

January 1, 2021
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01Jan

Disability pensions and social security reform : analysis of the Latin American experience

By Grushka, Carlos O. & Demarco, Gustavo This paper describes the disability pension arrangements prevailing in ten Latin American countries that reformed their pension systems. The analysis is limited to the topic of disability pensions, without attempting to evaluate other critical aspects such as the available infrastructure: handicapped access generally (ramps, blind cues), medical and nursing support, home care, and so on. The relative significance of disability pensions is highly dependant on these factors and, however, they are really limited...

January 1, 2021
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01Jan

Sistema de pensiones en América Latina: Argentina: evolución del Sistema Nacional de Previsión Social y propuesta de reforma

Por CEPAL Los sistemas tradicionales de pensiones en muchos países de América Latina y el Caribe, adolecen en la actualidad de serias deficiencias y limitaciones. Estas últimas se refieren principalmente a bajas coberturas, alta evasión en las cotizaciones, déficit financieros y actuariales crecientes, reducidas pensiones y falta de equidad entre aportes y beneficios. La mayor parte de estos resultados apunta a deficiencias de orden estructural. Se comprende entonces la importancia que la CEPAL ha asignado al análisis de los factores...

January 1, 2021
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