October 2022
07Oct

US. Study Finds Millennials Are Less Likely to be Secure in Their Retirement

New research from the Pension Research Council shows job rates, marriage and home ownership down for early millennials. Millennials may have a harder time maintaining their standard of living due to a variety of factors, according to research from the Pension Research Council at the Wharton School of Business at the University of Pennsylvania. At a glance, there is reason for both pessimism and optimism. Among early millennials, male labor force participation is down from past generations, with 89% of men...

October 7, 2022
News, , ,
Read more...

September 2022
09Sep

The Impact of Health on Wealth: Empirical Evidence

By Umesh Ghimire This paper empirically evaluates the impact of health on wealth among adults between the ages of 50 and 100 in the United States. Using the frailty index to measure health status and carefully accounting for the dynamic relationship between frailty and wealth, I find that suffering one more health deficit leads, on average, to approximately 2.23 percent decline in the net worth of American households. The impact is concentrated among individuals over the age of 70, in...

September 9, 2022
Aging, Articles, Savings, , ,
Read more...
09Sep

Spending Elasticity and Optimal Portfolio Risk Levels

By David Blanchett, Jeremy Stempien Research on optimal retirement strategies overwhelmingly assumes that the retirement income goal is effectively inelastic (or fixed), which implies the retiree household has neither the desire nor the ability to cut back on spending for the entire duration of retirement (which is often assumed to last 30+ years). This is an incredibly unrealistic assumption that has significant implications on a myriad of retirement decisions. This piece focuses on how spending elasticity impacts optimal portfolio risk...

September 9, 2022
Articles, Savings, ,
Read more...
02Sep

The National Landscape of State Retirement Benefits

By Jonathan Moody, Anthony Randazzo Retirement security is ultimately about retirement income. Families and individuals want to know that during their retirement years they will have enough weekly, monthly, or annual income to live comfortably and meet their basic needs. Of course, many people aspire to more than just the basics. Ask even a handful of individuals about how they want to live in retirement, and you’ll hear a wide range of preferences. Expenses can vary from family-to-family, too, depending on housing, health...

September 2, 2022
Books, Books, System Sustainability, , , , ,
Read more...

August 2022
30Aug

Albania. Only wage increases through more productivity can save public pension system, Word Bank says

By Tirana Times The only way to guarantee that Albanians can rely on a public pension in the future is to increase wages through higher productivity, the World Bank says in a recent report. Albania is going through a major demographic transition with high rates of out-migration and the rapid aging of the population, which is making its social insurance system a huge burden on the economy as the contributor/beneficiary ratio continues to deteriorate. In Albania, expenditures in relation to GDP for...

August 30, 2022
News, OP Ed, , , ,
Read more...
24Aug

US. How to reform Social Security to ensure a sustainable future

According to the Social Security Administration, approximately 56 million people depend on Social Security (OASI) for their retirement. For about half of older adults, it provides at least 50% of their income, and for one in four older adults, it provides at least 90% of their income. In addition, it offers social insurance protection to workers who become disabled and to families whose breadwinner dies. In July, the Social Security Board of Trustees reported that Social Security benefits will be...

August 24, 2022
News, , ,
Read more...
16Aug

Older people face losing €1,532 in spending power by end of year

Older people are facing a cost of living crisis as rising inflation takes its toll on pensions and savings. By the end of 2023, older persons could lose 15% to 20% of their spending power putting them at risk of poverty. According to Age Action, Ireland’s leading advocacy agency on older persons and ageing, the average older person will lose €1,532 in spending power by the end of this year. The average older couple will lose €3,364. The charity is calling on...

August 16, 2022
News, ,
Read more...
12Aug

The Vanguard Participant Saving Rate Index

By Jeffrey W. Clark & Jean A. Young Saving rates are fundamental to retirement wealth accumulations. In this paper, we assess whether Vanguard defined contribution plan participants are saving optimally in their current workplace retirement plan. ● We find that 7 in 10 defined contribution plan participants are saving at rates that would enable them to attain a 65% replacement rate in retirement. Saving rates include both the employee elective contributions and any employer contributions. ● We find that a modest increase...

August 12, 2022
Books, Savings, , , ,
Read more...
11Aug

Public Redistribution in Europe: Between Generations or Income Groups?

By Bernhard Hammer, Michael Christl & Silvia De Poli Governments face a potential trade-off between provision for the population in retirement and the support of working-age households with low income. Using EUROMOD-based microdata from 28 countries, we quantify public redistribution to pensioner- and working-age households, distinguishing also by income group. In general, Northern European countries are characterized by a low net redistribution between households, limited public pensions, but a strong support of low-income households. By contrast, most Southern European countries...

August 11, 2022
Articles, Public Pensions, , ,
Read more...
11Aug

More than 13,000 sign petition calling for guaranteed £200-a-week UK pension

More than 13,000 people have signed a petition demanding a guaranteed pension of £200-a-week in the UK. A group of pensioners is calling for the weekly rate to go up in light of the cost of living crisis The Silver Voices group, which successfully fought for free TV licences for the over-75s, wants the Government to set a new floor for the amount OAPs receive. It comes as households are engulfed by soaring energy costs, runaway inflation and food price...

August 11, 2022
News, ,
Read more...