December 2017

30Dec

How to Invest and Spend Wealth in Retirement? A Utility-Based Analysis

By Servaas van Bilsen (University of Amsterdam), A. Lans Bovenberg (Tilburg University - Center for Economic Research (CentER); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research)) & Roger J. A. Laeven (University of Amsterdam - Amsterdam School of Economics) This paper explores the optimal consumption and investment behavior of a retiree who derives utility from the ratio between consumption and an endogenous habit. By developing a non-trivial linearization to the budget...

December 30, 2017
Articles, Investing, Savings, , ,
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23Dec

The Modern Tontine: An Innovative Instrument for Longevity Risk Management in an Aging Society

By Jan-Hendrik Weinert (Goethe University Frankfurt - Faculty of Economics and Business Administration) & Helmut Gründl (Goethe University Frankfurt - Department of Finance; International Center for Insurance Regulation) The changing social, financial and regulatory frameworks, such as an increasingly aging society, the current low interest rate environment, as well as the implementation of Solvency II, lead to the search for new product forms for private pension provision. In order to address the various issues, these new product forms should reduce...

December 23, 2017
Aging, Articles, Investing, Pension design, , , ,
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04Dec

Securing Lifelong Retirement Income: Global Annuity Markets and Policy

By Olivia S. Mitchel Interest in longevity and longevity risk management is burgeoning, as government and regulatory agencies are increasingly conscious of the potential risks and benefits of longer lifespans. Commercial and industrial organizations, especially within the financial sector, are awakening to the opportunities presented by population aging, along with the new array of financial insurance instruments to manage longevity risk, which more sophisticated markets are making possible. This volume explores three main themes: the need for products to manage...

December 4, 2017
Books, Corporate Governance, Investing, Regulation, , ,
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04Dec

G20 Nations Shifting the Trillions: Impact Investing, Green Infrastructure and Inclusive Growth

By M. Nicolas J. Firzli (World Pensions Council (WPC)) The 2017 Spring Meetings coincided with the surprise calling of snap general elections in the UK and military tensions in the Yellow Sea. Our postwar social contract has to cope with unprecedented shocks: Britain’s thorny withdrawal from the EU, worsening Migrant Crisis, rise in populist demagoguery. But there are also positive signs: the UN’s Sustainable Development Goals (SDGs) and new, more demanding governance norms are making unprecedented advances across the boardrooms of...

December 4, 2017
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November 2017

12Nov

Alternative Measures of Non-Cognitive Skills and Their Effect on Retirement Preparation and Financial Capability

By Gema Zamarro (University of Arkansas) Social science, more than ever, is drawing upon the insights of personality psychology. Though researchers now know that non-cognitive skills and personality traits, such as conscientiousness, grit, self-control, or a growth mindset could be important for life outcomes, they struggle to find reliable measures of these skills. Self-reports are often used for analysis but these measures have been found to be affected by important biases. We study the validity of innovative more robust measures...

November 12, 2017
Articles, Investing, Pension design, Slider-Left, System Sustainability,
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October 2017

27Oct

Longevity Risk and Capital Markets: The 2015-16 Update

By David P. Blake (The Pensions Institute), Nicole El Karoui (Ecole Polytechnique), Richard D. MacMinn (National Chengchi University) & Stéphane Loisel (University of Lyon) This Special Issue of Insurance: Mathematics and Economics contains 16 contributions to the academic literature all dealing with longevity risk and capital markets. Draft versions of the papers were presented at Longevity 11: The Eleventh International Longevity Risk and Capital Markets Solutions Conference that was held in Lyon, France on 8-9 September 2015. It was hosted...

October 27, 2017
Articles, Investing, Management,
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20Oct

Homeownership, Social Insurance, and Old-Age Security in the United States and Europe

By Stipica Mudrazija & Barbara A. Butrica (The Urban Institute) Relatively few Americans have accumulated substantial savings outside of their employer-sponsored retirement plans, yet most own their homes. The traditional view of the retirement income system as a three-legged stool supported by Social Security, private pensions, and savings may be better viewed as being supported by Social Security, pensions, and homeownership. Country-specific economic, social, and political developments throughout modern history mean that homeownership rates and the relative importance of homeownership for...

October 20, 2017
Aging, Articles, Investing, Savings, Slider-Left, , ,
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20Oct

Fiscal Incidence in Belarus: A Commitment to Equity Analysis

By Kateryna Bornukova (BEROC), Gleb Shymanovich (IPM Research Center), Alexander Chubrik (CASE - Center for Social and Economic Research; IPM Research Center) The paper employs the Commitment to Equity framework to present a first attempt at a comprehensive fiscal incidence analysis for Belarus, encompassing the revenue and expenditures components of the fiscal system, including direct and indirect taxes, as well as direct, indirect, and in-kind transfers. The analysis reveals that fiscal policies in Belarus effectively redistribute income from the top...

October 20, 2017
Articles, Investing, Management, Regulation
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09Oct

Saving the Next Billion from Old Age Poverty. Global Lessons for Local Action

This Book Project is the first of a series of initiatives by pinBox to jumpstart a global dialogue and collaborative action on pension inclusion across Asia, Africa and Latin America. The Book presents the policy outlook, past efforts and planned interventions by several developing countries as well as thematic chapters on the key principles and issues in design and implementation of inclusive pension arrangements. This book was realeased on October 12 on the pinBox Digital Micro-Pension Inclusion Roundtable 2017 For more information...

October 9, 2017
Adequacy, Aging, Articles, Books, Corporate Governance, Funding, Investing, Labor Market, Management, News, Pension design, Regulation, Savings, Slider, Supervision, System Sustainability
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08Oct

Endowment vs Pension Returns

By Michael Karris (EndowBridge Capital) Does the Endowment Model still work? Judging by large endowments’ steady outperformance of a 70% global stock /30% US bond index, THE ANSWER IS YES. Versus a 60% US stock / 40% US bond index, the answer is not as clear cut. Even so, the Endowment Model still adds value for a long-term portfolio that uses alternative assets, especially venture capital. The lucrative illiquidity premium has generated superior returns for U.S. endowments versus other investors, especially through...

October 8, 2017
Articles, Investing, Savings
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