August 2018

18Aug

Financial Fraud among Older Americans: Evidence and Implications

By Marguerite DeLiema, Martha Deevy, Annamaria Lusardi, Olivia S. Mitchell The consequences of poor financial capability at older ages are serious and include making mistakes with credit, spending retirement assets too quickly, and being defrauded by financial predators. Because older persons are at or past the peak of their wealth accumulation, they are often the targets of fraud. Our project analyzes a module we developed and fielded in the 2016 Health and Retirement Study (HRS). Using this dataset, we evaluate...

August 18, 2018
Aging, Articles, Labor Market, Savings, Slider-Left, ,
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11Aug

The Power of Working Longer

By Gila Bronshtein This paper compares the relative strengths of working longer vs. saving more in terms of increasing a household’s affordable, sustainable standard of living in retirement. Both stylized households and actual households from the Health and Retirement Study are examined. We assume that workers commence Social Security benefits when they retire. The basic result is that delaying retirement by 3-6 months has the same impact on the retirement standard of living as saving an additional one-percentage point of...

August 11, 2018
Aging, Articles, Labor Market, Savings, Slider-Left, ,
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11Aug

Behavioral Household Finance

John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian NBER Program(s):Aging, Public Economics This chapter provides an overview of household finance. The first part summarizes key facts regarding household financial behavior, emphasizing empirical regularities that are inconsistent with the standard classical economic model and discussing extensions of the classical model and explanations grounded in behavioral economics that can account for the observed patterns. This part covers five topics: consumption and savings, borrowing, payments, asset allocation, and insurance. The second part...

August 11, 2018
Articles, Investing, Savings
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06Aug

Price-Based Investment Strategies: How Research Discoveries Reinvented Technical Analysis

By Adam Zaremba &‎ Jacob "Koby" Shemer This compelling book examines the price-based revolution in investing, showing how research over recent decades has reinvented technical analysis. The authors discuss the major groups of price-based strategies, considering their theoretical motivation, individual and combined implementation, and back-tested results when applied to investment across country stock markets. Containing a comprehensive sample of performance data, taken from 24 major developed markets around the world and ranging over the last 25 years, the authors construct...

August 6, 2018
Books, Investing, Savings,
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06Aug

Self-Insurance Against Natural Disasters: The Use of Pension Funds in Pacific Island Countries

By Si Guo (International Monetary Fund (IMF)) & Futoshi Narita Pacific island countries are exposed to significant risks from natural disasters. As adisaster relief measure, Fiji allowed pre-retirement pension withdrawls in the wake ofCyclone Winston in 2016. Motivated by this policy action, we provide a normativeanalysis of the use of early pension withdrawals after disasters, by setting up a life-cyclesaving model with myopic households facing large natural disaster shocks. The modeldemonstrates the key trade-off between building up sufficient retirement savings...

August 6, 2018
Articles, Pension design, Savings,
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July 2018

30Jul

The Taxation of Pensions

By Robert Holzmann & John Piggott Theoretical and policy perspectives on the taxation of pension, viewed in an international context.Policy makers and academic researchers have been preoccupied in recent decades with the design of pension schemes and effective pension system reform. Relatively little attention has been given to the taxation of pensions and, more broadly, the provision of retirement income. In this book, experts from a range of countries explore the interconnection. Their contributions are especially timely, given recent demographic...

July 30, 2018
Books, Investing, Regulation, Savings, ,
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June 2018

25Jun

Saving Preferences After Retirement

By Jennifer Alonso-García (University of New South Wales (UNSW) - ARC Centre of Excellence in Population Ageing Research (CEPAR)), Hazel Bateman (UNSW - School of Actuarial Studies, Centre for Pensions and Superannuation), Johan Bonekamp (Tilburg University - Department of Econometrics & Operations Research), Arthur van Soest (Tilburg University) & Ralph Stevens (CPB Netherlands Bureau of Economic Policy Analysis; CEPAR) We investigate the importance of rational and psychological motives for choosing a saving and consumption trajectory after retirement. Using an online...

June 25, 2018
Articles, Savings, ,
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10Jun

Inheritances and Inequality across and within Generations

By Andrew Hood & Robert Joyce Today’s elderly have much more wealth to bequeath than their predecessors, primarily as the result of rising homeownership rates and rising house prices. At the same time, today’s young adults will find it harder to accumulate wealth of their own than previous generations did, due to the sharp fall in homeownership, the dramatic decline of defined benefit pensions in the private sector and the stagnation in household incomes. Together, these trends mean inherited wealth is...

June 10, 2018
Aging, Books, Labor Market, Savings, ,
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May 2018

27May

Insight into the Earned Income Tax Credit and Tax-Advantaged Retirement Savings

By David Rogofsky (Government of the United States of America - Office of Retirement Policy), Richard Chard (Government of the United States of America - Office of Research, Evaluation and Statistics), Joanne Yoong (Center for Economic and Social Research (CESR)) Saving for retirement has traditionally been compared to a three-legged stool supported by Social Security benefits, workplace pensions, and personal savings. As the prevalence of defined benefit pensions has diminished in recent decades, the importance of personal savings has grown....

May 27, 2018
Articles, Savings,
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07May

Designing Pension Systems with Coherent Funded Private Pillars Including Issues for Notional Defined Contribution Schemes

By William Joseph Price (World Bank) This paper reviews the factors that should guide the design of private funded pensions to create a complete pension system alongside a notional defined contribution -- or public -- component. It argues that a mix of public and private pensions is the most effective option to deliver the best combination of pension outcomes. Pension design should start with a vision for five core outcomes: coverage, adequacy, sustainability, efficiency, and security. Thinking through these outcomes...

May 7, 2018
Articles, Pension design, Savings,
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