PSN: Pensions & Retirement (Topic)最新文献

{"title":"Reform Options for Mature Defined Benefit Pension Plans: The Case of the Netherlands","authors":"Marc Gérard","doi":"10.5089/9781484395912.001","DOIUrl":"https://doi.org/10.5089/9781484395912.001","url":null,"abstract":"The Netherlands has been operating fully funded, defined benefit second pillar pension schemes that have consistently ranked high worldwide for delivering high replacement rates while featuring strong solidarity among members. Yet the long-term sustainability of the Dutch pension funds has been undermined in recent years by protracted low interest rates and unfavorable demographic developments, exacerbating controversies over intergenerational transfer mechanisms within the plans. This has prompted a national debate over ways to move toward more individualization while preserving financial security at retirement for all. This paper draws on this experience, illustrated by stress testing simulations and assessed vis-a-vis solutions implemented in peer countries, to discuss the main policy trade-offs associated with the reform of mature pension systems in advanced economies.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"93 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122090405","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Retire In-Home: A New Way to Use a Home to Guarantee Retirement Income","authors":"A. Muralidhar","doi":"10.2139/ssrn.3282614","DOIUrl":"https://doi.org/10.2139/ssrn.3282614","url":null,"abstract":"There is a growing retirement crisis and most of the focus has been on the fact that individuals are not saving enough for retirement, may not have access to pension schemes, and find it difficult to choose from a wide range of retirement products. One solution that has been considered is to improve access to Reverse Mortgages (RMs) so that individuals can convert their (possibly) single largest asset into a through-death income stream. However, current RMs are complex with constraints on who can use them, and with multiple parties to the transaction to hedge residual risks. As a result, a limited number of institutions (and that too with government support) offer such products. These challenges may have also limited the use of RMs for the typical individual saving for retirement and are unlikely to solve the larger crisis. We suggest a new approach - “Retire In-Home” (Retire through Income from one’s Home) - that leverages recently proposed tradeable instruments to improve retirement security and hedge against standard-of-living risks. These include a bond called BFFS/SeLFIES, designed to secure real retirement income for a fixed term (with potentially a second new bond, called a LIVE bond, designed to protect individuals against longevity risk if individuals do not want to purchase deferred annuities because of annuity challenges). Further, the paper also shows how a new investor segment could be tapped to expand financing for such transactions as recommended by Prof. Robert C. Merton. \u0000 \u0000This paper demonstrates how Retire In-Home could simplify this market and allow even the most financially unsophisticated individual to participate in this transaction. The paper works through three cases: (a) when death is known (or a term income); (b) when longevity risk is hedged with deferred annuities; and (c) when longevity risk is hedged with LIVE Bonds. The paper concludes with extensions including accounting for up-front lumpsum payments, forward-starting contracts and even multi-occupant situations.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"49 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122953745","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Social Security Programs and Employment at Older Ages in the Netherlands","authors":"Klaas de Vos, A. Kapteyn, A. Kalwij","doi":"10.3386/W25250","DOIUrl":"https://doi.org/10.3386/W25250","url":null,"abstract":"There have been a vast number of social security reforms aimed at increasing employment at older ages over the last two decades in the Netherlands. These reforms mainly lead to more stringent eligibility criteria for, and reduced generosity of, social security programs. Our empirical evidence suggests that these reforms are likely to have contributed to individuals working longer, but it is difficult to pinpoint which reforms have been most effective. Furthermore, we show that the recent increase in the state pension eligibility age is likely to further increase employment at older ages.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"291 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122197831","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Optimal Investment for a Retirement Plan with Deferred Annuities","authors":"Iqbal Owadally, Chul Jang, A. Clare","doi":"10.2139/ssrn.3454671","DOIUrl":"https://doi.org/10.2139/ssrn.3454671","url":null,"abstract":"We construct an optimal investment portfolio model with deferred annuities for an individual investor saving for retirement. The objective function consists of power utility in terms of secured retirement income from the deferred annuity purchases, as well as bequest from remaining wealth invested in equity, bond, and cash funds. The asset universe is governed by a vector autoregressive model incorporating the Nelson-Siegel term structure and equity returns. We use multi-stage stochastic programming to solve the optimization problem numerically. Our numerical results show that deferred annuity purchases are made continuously over the working lifetime of the investor, increasing particularly in the years before retirement. The investment strategy hedges price changes in deferred annuities, and bond holding and deferred annuity purchases increase when interest rates are high. Optimal investment and deferred annuity choices depend on realised and expected values of state variables. The optimal strategy is also compared with typical retirement plan strategies such as glide paths. Our results provide novel support for deferred annuities as a major source of retirement income.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"263 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133373551","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Wealth Decumulation Behavior of the Retired Elderly in Japan: The Relative Importance of Precautionary Saving and Bequest Motives","authors":"Yoko Niimi, C. Horioka","doi":"10.2139/ssrn.3267068","DOIUrl":"https://doi.org/10.2139/ssrn.3267068","url":null,"abstract":"This paper analyzes the determinants of the wealth decumulation behavior of the retired elderly in Japan using unique information from two household surveys, and by so doing, attempts to assess the relative importance of precautionary saving and bequest motives in explaining the lower than expected rates of wealth decumulation of the retired elderly. Taken together, our analyses of these two datasets show that precautionary saving plays a relatively important role in explaining the lower than expected wealth decumulation rate of the retired elderly, at least in the case of Japan, even though both precautionary saving and bequest motives are important drivers behind this puzzle. Our results also suggest the possibility that financial burden of parental care may also affect the wealth decumulation behavior of the retired elderly in Japan. Given that parental care responsibilities tend to arise relatively late in life, often after retirement, in the case of Japan, our results suggest that the financial burden of parental care may be a relevant issue when analyzing the wealth decumulation behavior of the elderly.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134053167","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Final Report: Risk Management Maturity in Large Australian Superannuation Funds","authors":"Elizabeth Sheedy, D. Jepsen","doi":"10.2139/ssrn.3171833","DOIUrl":"https://doi.org/10.2139/ssrn.3171833","url":null,"abstract":"Given the immense importance of the superannuation sector for all Australians, the objective of this study is to investigate risk management maturity in the superannuation sector and identify areas for further improvement. The study focusses on large superannuation funds (i.e. those with assets under management in excess of $10 billion) and coincides with the fifth anniversary of the implementation of the prudential standards for risk management in July 2013. 1. Building on previous research from the safety field, and with input from our panel of subject matter experts, we have developed a 5 level model of risk management maturity. 2. The majority of subject-matter experts interviewed believe that Level 1 would be appropriate and desirable for the sector given the importance of managing retirement savings. While rapidly evolving, most large Australian superannuation funds, have not yet met this risk maturity standard. This is true despite the laudable focus of the industry on member outcomes. A majority of experts believes that most large funds are currently at Level 3, some at Levels 2 and 4, with few if any at Level 1. In other words, many large funds are still working to realise effective risk management systems and frameworks. At this level the focus is on ensuring that risk management systems are well resourced and functioning efficiently (people, IT systems, processes, reporting lines, remuneration and performance measurement); risk management is built into the governance framework; the board takes responsibility for risk management and ensures that the risk appetite is consistent with strategy. This is not surprising given the relatively short time since prudential standards for risk were introduced. A minority of experts had a more positive perception of risk management maturity in the sector, perceiving a number of funds to be at Levels 1 and 2 already. 3. We also developed a list of attributes of organisations with risk management maturity. These attributes should be seen as requirements over and above the implementation of effective risk management systems (Level 3). At Level 1 an organisation should have all, while at Level 2 an organisation should have some of the following attributes: i. Commitment to continuous improvement of the risk management framework. ii. Everyone has accountability for risk management. iii. Risk management viewed as an enabler. iv. Risk communication is effective. v. Right amount of the right risks. \u00004. Interviews with subject-matter experts highlighted challenges for the industry in all of the maturity attributes, thus confirming that risk management maturity has room for improvement. \u00005. Staff surveys in five large Australian funds confirm the interview findings in relation to risk management maturity. i. None of the funds we have assessed so far has achieved consistently strong ratings for risk structures, suggesting that there is further work to be done bedding these down. ii. In some funds we observed ri","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127545835","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Albanian Challenges Towards an Efficient Pension System","authors":"Olgerta Idrizi, Besa Shahini","doi":"10.2139/ssrn.3282671","DOIUrl":"https://doi.org/10.2139/ssrn.3282671","url":null,"abstract":"Pensions' reform in most Western, Central and Eastern European countries is one of the most important topics relevant for their future development. The main objective of this study is to assist in predicting the future of the pension scheme in Albania through actuarial projections related to demographic structure, unemployment, number of contributors and beneficiaries. Through this study, we intended to predict what would be the financial effect of two options. First, we investigate the likely outcome if Albania continues with the same scheme as currently used. Second, we investigate the likely outcome when a new contributory scheme is being implemented. The methodology used for implementing the actuarial model is based on the construction of the population projections using the RUP system (Rural Urban Projection), a system developed by the Census Bureau of the United States of America, while the economic performance forecasts, i.e.: GDP, inflation rate, unemployment rate or expected indexation of wages and pensions, are be sourced by the Albanian Ministry of Finance and the International Monetary Fund. The study concludes and recommends some of the steps for reforming the pension scheme in Albania based on the experience of other countries and the likely financial effect to the state budget in case of the implementation of the new scheme.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"42 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124538513","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Chinese Pension System","authors":"Hanming Fang, Jin Feng","doi":"10.2139/SSRN.3252329","DOIUrl":"https://doi.org/10.2139/SSRN.3252329","url":null,"abstract":"We provide a detailed overview of the current state of the Chinese pension system, as well as its development, its problems and some ideas for future reforms.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"116 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132721769","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Pension Strategies of Workers in a Country Getting Old Before Getting Rich","authors":"Sonia Buchholtz, J. Gaska, M. Góra","doi":"10.2139/ssrn.3253488","DOIUrl":"https://doi.org/10.2139/ssrn.3253488","url":null,"abstract":"The downward trend in replacement rate is going to affect the material wellbeing of Polish future retirees. The aim of this paper is to identify the pension strategies working Poles undertake to counteract future deterioration in material conditions, with particular interest in saving practices and labour market activity. We make use of the Pension awareness of Poles survey data (N=1006) and apply quantitative methods: binary logistic regressions and principal component analysis (PCA). We distinguish between first-best and second-best strategies. The former relates to accumulating pension wealth, while the latter to the range of actions aimed at making ends meet, provided insufficient benefit. The results show that there is a poor relationship between knowledge, plans and behaviour. Moreover, knowledge itself is limited. Even though the awareness of the worsening conditions of retirees-to-be is increasing, little is being done to counteract it. Among various demographic and socio-economic descriptors income and education play an important role in distinguishing patterns, as well as status of self-employed. Three second-best strategies have been distinguished: own responsibility, external support, rebellion. We conclude that information policy on the pension system should be improved, and the incentives for older workers to continue their careers should be strengthened.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128786589","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Social Security Coverage Around the World: The Case of China and Mexico","authors":"F. Perez-Arce, M. Prados, Erik Meijer, Jinkook Lee","doi":"10.2139/ssrn.3376688","DOIUrl":"https://doi.org/10.2139/ssrn.3376688","url":null,"abstract":"We describe the current state and recent trends in the landscape of social security programs in China, Mexico, and India. A common thread across these countries is the introduction and recent expansion of old-age pension programs with noncontributory components. We use surveys from the HRS-family to analyze trends in the levels and correlates of social security coverage in Mexico and China. The most notable development is the increase in public pension coverage for the elderly population. In China, coverage rates for the population 70 and older grew from 33 percent in 2011 to 68 percent in 2015; and in Mexico from 32 percent to 55 percent in the 10 years following 2002. The new programs also caused significant changes on the determinants of coverage in ways that share similarities across countries. Variables such as educational attainment, urban status, and an employment history in the formal sector, were strong predictors of public pension receipt in the earlier survey-waves, but not in the most recent ones for China and Mexico. However, a strong relationship remains, and is unchanged across time, between those same characteristics and the average income pension amount. Likewise, there are no significant changes between them and receipt of benefits from other social programs. Based on these results, we conduct simulations that show, for example, that even rapid transformation of the labor market or education levels of the population would not radically change the proportion covered by pension programs but would largely increase average pension amounts.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"109 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132285142","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}