February 2018

26Feb

The Impact of Life-Course Developments on Pensions in the Ndc Systems in Poland, Italy and Sweden and Point System in Germany

By Agnieszka Chłoń-Domińczak (Warsaw School of Economics), Marek Góra (Warsaw School of Economics (SGH); IZA Institute of Labor Economics), Irena Kotowska (Warsaw School of Economics), Iga Magda (Warsaw School of Economics), Anna Ruzik-Sierdzińska (Warsaw School of Economics) & Pawel Strzelecki (National Bank of Poland; Warsaw School of Economics) Old-age pensions in the NDC systems reflect the accumulated lifetime labour income. Interrupted careers and differences in the employment rates, particularly between men and women will have a significant impact on...

February 26, 2018
Aging, Articles, Labor Market, Pension design, ,
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19Feb

Political Viability of Intergenerational Transfers. An Empirical Application

By Gianko Michailidis (University of Barcelona) & Concepcio Patxot (University of Barcelona - Department of Economic Theory) Public intergenerational transfers (IGTs) may arise because of the failure of private arrangements to provide optimal economic resources for the young and the old. We examine the political sustainability of the system of public IGTs by asking what the outcome would be if the decision per se to reallocate economic resources between generations was put to the vote. By exploiting the particular nature...

February 19, 2018
Aging, Articles, Labor Market, Pension design, , ,
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19Feb

The Optimal Allocation of Longevity Risk with Perfect Insurance Markets

By Antoine Bommier (ETH Zürich) & Hélène Schernberg (ETH Zurich) This paper discusses the allocation of aggregate longevity risk in the case of perfect insurance markets. We show that the optimal allocation transfers some risk to the pensioners, even if pension providers have access to a perfect insurance market. Individuals prefer contributions and benefits to depend on the evolution of aggregate mortality rates rather than being fixed. Indeed, this flexibility offers an interesting diversification strategy where the prospect of a...

February 19, 2018
Aging, Articles, Labor Market, Management, Pension design, , ,
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19Feb

How Persistent Low Expected Returns Alter Optimal Life Cycle Saving, Investment, and Retirement Behavior

By Vanya Horneff, Raimond Maurer, Olivia S. Mitchell This paper explores how an environment of persistent low returns influences saving, investing, and retirement behaviors, as compared to what in the past had been thought of as more “normal” financial conditions. Our calibrated lifecycle dynamic model with realistic tax, minimum distribution, and Social Security benefit rules produces results that agree with observed saving, work, and claiming age behavior of U.S. households. In particular, our model generates a large peak at the...

February 19, 2018
Articles, Investing, Savings, , ,
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12Feb

Headed for the Poorhouse: How to Ensure Seniors Don’t Run Out of Cash Before They Run Out of Time

By Bonnie-Jeanne MacDonald (Ryerson University - The National Institute of Aging (NIA)) Income security in later life (age 85) is more important now than ever. More attention needs to be paid to how Canadians can best draw down their savings after retirement and secure adequate income for advanced ages. Retiring Canadians need innovative solutions – ones that add definitive value but place no new pressures on the Canadian public purse. I propose a government-led solution: Canada’s Living Income For the...

February 12, 2018
Aging, Articles, Savings, ,
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12Feb

Headed for the Poorhouse: How to Ensure Seniors Don't Run Out of Cash Before They Run Out of Time

By Bonnie-Jeanne MacDonald (Ryerson University - The National Institute of Aging (NIA)) Income security in later life (age 85) is more important now than ever. More attention needs to be paid to how Canadians can best draw down their savings after retirement and secure adequate income for advanced ages. Retiring Canadians need innovative solutions – ones that add definitive value but place no new pressures on the Canadian public purse. I propose a government-led solution: Canada’s Living Income For the...

February 12, 2018
Aging, Articles, Savings, ,
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12Feb

The Effect of Physical and Cognitive Decline at Older Ages on Work and Retirement: Evidence From Occupational Job Demands and Job Mismatch

By Peter Hudomiet (RAND Corporation), Michael D. Hurd (RAND Corporation; State University of New York at Stony Brook - College of Arts and Science - Department of Economics; National Bureau of Economic Research (NBER)), Susann Rohwedder (RAND Corporation) & Robert J. Willis (University of Michigan at Ann Arbor - Department of Economics; National Bureau of Economic Research (NBER)) As workers age, their physical and cognitive abilities tend to decline. This could lead to a mismatch between workers’ resources and the...

February 12, 2018
Aging, Articles, Labor Market, ,
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12Feb

The Effect of Income on Subjective Well-Being in Later Life: A Case Study of a Government Pension in South Korea

By Erin Hye-Won Kim (National University of Singapore (NUS) - Lee Kuan Yew School of Public Policy) Objectives. Despite keen interest among scholars and policy makers, little is known about whether income affects subjective well-being (SWB) in later life, a notoriously difficult question to answer, given the empirical challenge of isolating the effect of income from correlated influences and the possibility of reverse causality. This paper examines the effects of the 2008 introduction of the Basic Old-Age Pension, a noncontributory...

February 12, 2018
Articles, Pension design, Regulation, Slider-Left, ,
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05Feb

The Retirement Policy Challenges and Opportunities of Our Aging Society

By Professor United States Congress,‎ United States House of Representatives &‎ Committee On Ways and Means The retirement policy challenges and opportunities of our aging society: hearing before the Committee on Ways and Means, U.S. House of Representatives, One Hundred Ninth Congress, first session, May 19, 2005. Read more HERE

February 5, 2018
Books
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05Feb

A Framework for Analyzing Defined Benefit Pension Insurance: The Survivor Benefit Plan for Veterans

By William W. Jennings (U.S. Air Force Academy - Department of Management), Jeff Merrell (University of Colorado at Boulder - Leeds School of Business) Thomas O'Malley (U.S. Air Force Academy - Department of Management) & Brian Payne (US Air Force Academy) Millions of defined benefit pensioners must select a pension insurance method. We present a framework for making this decision within the context of US military veterans’ Survivor Benefit Plan (SBP). Federal government subsidies generate a positive expected net payout...

February 5, 2018
Articles, Pension design, Regulation, , ,
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