April 2023
26Apr

Social protection and response to covid-19 in Latin America and the Caribbean: Innovations in registration and payment systems

By Nurth Palomo, Luis Vargas Faulbaum, Anna Carolina Machado, Camila Rolon and Fábio Veras Soares, Monica Rubio, Florencia Alejandre & Gerardo Escaroz The outbreak of the COVID-19 pandemic has hit the foundations of the economy and provoked devastating social effects in all the countries in the world, being Latin America and the Caribbean (LAC) one of the most affected regions. As of mid-March 2021, there were 37 million reported cases in the region and a staggering 1,275,567 deaths, equivalent to...

April 26, 2023
Books, Books, Payout, , ,
Read more...

August 2022
05Aug

On the Impact of Low Interest Rates on Common Withdrawal Rules in Old Age

By An Chen, Stefan Schelling & Nils Sørensen Ensuring a desired standard of living in retirement has been strongly challenged by increasing life expectancy, and simultaneously by the current and possibly long-lasting low interest environment. In contrast to literature in this field which claims annuitization of wealth being a vital part of retirement planning, many people manage their retirement savings and withdrawal policy during the retirement period independently. To this end, several easily applicable self-managed withdrawal rules are commonly recommended...

August 5, 2022
Articles, Payout, Pension design, Savings, ,
Read more...
05Aug

The Misery of Spending Down the Nest Egg: The Effect of Annuitization on Consumption and Wellbeing

By Yu Gao, George Loewenstein & Xianghong Wang We study the effects of annuitization compared to spending down a lump-sum on consumption and subjective wellbeing. Analyzing longitudinal data on UK retirees before and after the pension reform that provided greater freedom to draw down savings, we find that annuitization increased retirees’ consumption and life satisfaction. To further examine the behavioral channel of these effects, we conducted a field experiment with college students, giving them a flow or lump-sum payment. As...

August 5, 2022
Articles, Payout, Pension design, Savings, , ,
Read more...

January 2022
28Jan

Managing Misbehavior: Rational Choice in an Uncertain Retirement

By Rene Martel, Jennifer Gongola, sean klein, Avi Sharon Behavioral science has helped encourage better behaviors for many investors who are accumulating savings for retirement. This paper investigates the application of behavioral science to decumulation to help investors make better choices and maintain quality of life in retirement. We conducted a proprietary research study, collecting more than 750 responses from affluent and high-net-worth investors in the United States age 55 and older. The results identify key behavioral influences linked to...

January 28, 2022
Articles, Payout, Savings, , ,
Read more...

September 2021
10Sep

Horizon Effect on Optimal Retirement Decision

By Junkee Jeon, Minsuk Kwak & Kyunghyun Park We study an optimal consumption, investment, life insurance, and retirement decision of an economic agent who has an option to retire early any time before the mandatory retirement date. We conduct a thorough theoretical analysis for the optimal retirement problem with general utility function in the presence of mandatory retirement date, which leads to the optimal stopping problem in finite horizon. Furthermore, different marginal utility of consumption before and after retirement is...

September 10, 2021
Articles, Payout, Pension design, Retirement Age,
Read more...