January 2025
31Jan

South Africans face the prospect of retiring at 80

Based on data from over 300 000 Sanlam Umbrella Fund members. While 65 remains the official retirement age, most South Africans will need to work until 80 before they can afford to retire comfortably. This is according to data from Sanlam Corporate, based on insights into its over 300 000 Sanlam Umbrella Fund members. The company’s research highlights a growing retirement funding crisis, with estimates that only one in four South Africans will be able to retire at 65. Sanlam Corporate CEO Kanyisa...

January 31, 2025
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17Jan

Retirement Consumption and Pension Design

By Jonas Kolsrud, Camille Landais, Daniel Reck & Johannes Spinnewijn This paper analyzes consumption to evaluate the distributional effects of pension reforms. Using Swedish administrative data, we show that on average workers who retire earlier consume less while retired and experience larger drops in consumption around retirement. Interpreted via a theoretical model, these findings imply that reforms incentivizing later retirement incur a substantial consumption-smoothing cost. Turning to other features of pension policy, we find that reforms that redistribute based on...

January 17, 2025
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December 2024
19Dec

UK Government denies compensation to Waspi women

Prime Minister Keir Starmer has defended the decision to reject compensation for women hit by changes to the state pension age, arguing that the taxpayer "simply can't afford the tens of billions of pounds" in payments. He added that "90% of those impacted knew about the changes that were taking place". However, during Prime Minister's Questions, Sir Keir was repeatedly pressed on the government's decision, with one MP calling for a vote. The Women Against State Pension Inequality (Waspi) campaign group say that...

December 19, 2024
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09Dec

Pakistan. Can lower retirement age cut pension bill?

THE country’s federal pension bill currently exceeds Rs1tr, with Rs260bn allocated for civil servants and Rs750bn for armed forces. Its magnitude is as staggering as its growth rate, which is outpacing the increase in revenue, making it unsustainable without holistic reforms. As it stands, the government is spending more on pensions than the cost of running the bureaucracy. Successive governments have tried to implement reforms to cut the pension bill with the most recent proposal being lowering the retirement age by five years from 60...

December 9, 2024
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November 2024
22Nov

Australia. Why some people deserve an age pension before others: new research

However, the ageing population presents long-term fiscal challenges to the sustainability of social welfare systems of advanced economies such as Australia and especially the cost of providing age pensions. The Australian government’s Intergenerational Report 2023 suggests the number of people aged 65 and over will more than double over the next 40 years. But economic growth is forecast to be slower than the previous four decades because of lower population growth and reduced workforce participation due to ageing. In response, the federal government...

November 22, 2024
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08Nov

Forever young: where older workers keep on working

By Steven G. Allen & Ting Wang This paper examines inter-industry patterns of the employment of older workers over the last 20 years to understand where employment opportunities have grown the most. The underlying premise is that firms strategically align their age mix depending on production function and labor cost parameters. The industries that had the largest increases in the percentage of older workers were those that had the broadest pension coverage and those that made the greatest use of high-tech capital. There...

November 8, 2024
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October 2024
25Oct

Is the US headed for a retirement crisis?

Is the United States speeding towards a retirement crisis or not? Well, Wayne Park, CEO of John Hancock Retirement, won't go that far, but definitely believes the “check engine light is on.” Park’s concern is based on the firm’s recently released financial resiliency and longevity report which showed half the respondents feeling like they're falling behind in retirement saving, while another 40 percent said their financial situation was fair or poor. Meanwhile, the survey said the average respondent thinks they're going to be working...

October 25, 2024
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21Oct

Can’t wait to give up work? Why some people are not the retiring type

Ageing populations require a shake up of our pension systems, but fair and effective changes require an understanding of older workers. Across Europe, raising pension ages is a necessary - yet incendiary - conversation. As life expectancies increase, so does the ratio of pensioners to workers, ultimately resulting in mounting pressure on state budgets. In countries where retirement reforms have sparked controversy, one argument continues to resurface. Raising the state pension age, many argue, can't be a 'one-size fits-all' approach. Due to disparities...

October 21, 2024
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15Oct

From ageing to active living — working through old age in EU

Ausra Linkuviene, a retired typesetting designer from Lithuania, represents a growing trend in Europe, where retirement no longer means the end of a working career. Years after retiring, 67-year-old Austra has continued working. Supported by both her pension and salary, she can travel every year. Admired by her younger colleagues, she sees no reason to leave her profession, she told Xinhua. Her story reflects a larger demographic shift across Europe. By 2050, nearly 30 percent of the European Union (EU) population...

October 15, 2024
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14Oct

Deep Dive: China raises retirement ages as birth rate drops and ageing population grows

Deep Dive delves into hot issues in Hong Kong and mainland China. Our easy-to-read articles provide context to grasp what’s happening, while our questions help you craft informed responses. Check sample answers at the end of the page. News: China raises retirement age as it battles economic slump Country’s top legislative body announced the move as a way to deal with its ageing population of workers More people are set to retire than to enter the workforce, putting China’s pension...

October 14, 2024
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