April 2022

US. Mexican immigrants have to work longer due to inadequate Social Security benefits, study finds

Mexican immigrants are a critical part of the American workforce, but they are also financially vulnerable. As Emma Aguila explains in new research she co-authored in the Journal of Pension Economics and Finance, Mexican immigrants face greater obstacles in securing social security benefits and therefore have to work later into life. Equally important, Aguila and her colleagues, Zeewan Lee and Rebeca Wong, found Mexicans who do receive those benefits are more likely to rely on them compared to non-Hispanic white populations. However, an...

Movements In and Out of Poverty at Older Ages: Evidence from the HRS

Movements In and Out of Poverty at Older Ages: Evidence from the HRS

By Robert L. Clark, Annamaria Lusardi & Olivia S. Mitchell The objective of this paper is to determine Americans’ mobility patterns into and out of poverty in their later years. We track how older adults enter into and exit from poverty using the most extensive longitudinal survey on older Americans currently available, the Health and Retirement Study (HRS). Using over 20 years of data from the HRS, we show that the conditional probability of escaping poverty diminishes as the number...

Underfunded Public Sector Pension Plans, Social Security Participation, and the Retirement Decisions of Public Employees

Underfunded Public Sector Pension Plans, Social Security Participation, and the Retirement Decisions of Public Employees

By Leslie E. Papke I analyze the effects of public pension parameters, Social Security coverage, and state pension fund sustainability on the retirement of public employees. I use data from the Health and Retirement Study, including personal early and normal retirement eligibility and state of residence. I develop a state-level measure of effective public pension plan sustainability that reflects both the degree of public plan underfunding and a state’s ability to fund the plan with its own resources. Using the...

Labor Marcket Search, Informality, and Schooling Investmets

Labor Market Search, Informality, and Schooling Investmets

By Matteo Bobba, Luca Flabbi & Santiago Levy We develop a search and matching model where jobs can be formal or informal. Workers choose schooling and search for jobs. Firms post vacancies in each schooling market and decide the job's formality status. Upon meeting, workers and firms bargain over wages. The equilibrium size of the informal sector is an endogenous function of labor market fundamentals and institutions. We estimate the model using labor force survey data from Mexico and exploiting the...

Tecnologías Financieras: oportunidades y desafíos de las Fintech para la regulación, la educación y la inclusión financiera

Tecnologías Financieras: oportunidades y desafíos de las Fintech para la regulación, la educación y la inclusión financiera

Por Ignacio Esteban Carballo Las nuevas tecnologías financieras (Fintech) dan lugar a grandes oportunidades para la economía y la inclusión financiera, pero también conllevan algunos aspectos desafiantes e inciertos para estas áreas de cara al futuro. Este artículo presenta las oportunidades de las tecnologías financieras y discute sus desafíos teóricos en tres dimensiones: la regulación financiera, la educación financiera y la forma de medición de la inclusión financiera. Plantea preguntas abiertas en el ámbito de la regulación, destaca que la...

México. Efecto pandemia: Retiro de ahorros para la jubilación toca máximo desde octubre

En marzo del presente año los retiros parciales por desempleo de las Administradoras de Fondos para el Retiro (Afores) aumentaron 31 por ciento frente al mes anterior, para ubicarse en 2 mil 025.70 millones de pesos, su nivel más alto desde octubre de 2020. El dato de marzo es el segundo más elevado en lo que va de la crisis sanitaria, según cifras de la Comisión Nacional del Sistema de Ahorro para el Retiro (Consar). Este incremento se presenta luego...

Perú. Retiro de AFP: ¿qué opinan los expertos sobre un sexto retiro de ahorros para la jubilación?

Luego de que la Comisión de Economía del Congreso aprobara un sexto retiro de fondos del Sistema Privado de Pensiones (SPP), esta vez para dar acceso a todos los afiliados hasta 4 UIT (S/ 18,400), diversos especialistas se han pronunciado sobre las implicancias de la medida, que finalmente deberá ser debatida en el Pleno de Parlamento. Al respecto, el exministro de Economía, Luis Miguel Castilla, señaló que le parece irresponsable que se haya aprobado en comisión un sexto retiro porque...

Principal Financial poised to take stake in Chinese pension manager

Principal Financial Group is poised to become only the third foreign firm to take a stake in a Chinese pension management firm on the mainland. A "change of shareholders" announcement on the website of CCB Pension Management Co. Ltd., a subsidiary of Beijing-based China Construction Bank, said Wednesday that subject to approval by the China Banking and Insurance Regulatory Commission, Principal will acquire a 17.65% stake in CCB Pension Management. The announcement said China Construction Bank will transfer 15 percentage points...

Germany set for bumper pension hike amid inflation surge

German Chancellor Olaf Scholz's coalition Cabinet on Wednesday gave the green light to the largest hike in pensions in more than a generation. The decision was made against a backdrop of rampant inflation, with pensions in Germany adjusted each year based on the national average salary. It also comes after some pensioners received no increase last year as the coronavirus pandemic battered the economy. How big is the increase? Pensions in states that made up the former West Germany, where there was no...

US. Retirees less worried about financial risk than younger people

As the pandemic passes the two-year mark, there seems to be an emerging gap in the financial security of younger Americans compared with their retired counterparts, new survey findings suggest. Americans who have yet to retire and are still balancing careers, family and saving are feeling more worried about their financial future than they did at this point last year and are significantly less confident than current retirees. In fact, nearly two-thirds (63%) of non-retirees said they fear running out of...