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Retirement Income (retirement + income)
Selected AbstractsOxford Handbook of Pensions and Retirement Income, edited by Gordon L. Clark, Alicia H. Munnell, and J. Michael OrszagJOURNAL OF RISK AND INSURANCE, Issue 2 2008Article first published online: 5 MAY 200 No abstract is available for this article. [source] Implications of Singapore's CPF Scheme on Consumption Choices and Retirement IncomesPACIFIC ECONOMIC REVIEW, Issue 3 2001Kim-Lian Lim Singapore has a unique policy of allowing the use of mandatory social security contributions to finance homeownership. An intertemporal model of housing demand is employed to demonstrate analytically that the CPF scheme can distort an individual's intertemporal and intratemporal consumption choices, and induce Singaporeans to demand more housing than they would otherwise. The withdrawals for housing have also affected the adequacy of CPF balances for financing retirement. Pegging the rate of return on CPF balances to a long-term rate is the long-term solution to curbing excessive withdrawals for housing, and ensuring the adequacy of CPF savings for financing retirement. [source] Perspectives on Australian Retirement IncomesTHE AUSTRALIAN ECONOMIC REVIEW, Issue 2 2001Anthony King With important developments over the past two decades in Australian retirement income policy, projected future outcomes,for the public purse, for the national economy and for the future retired,have received considerable attention. This focus on the future should not, however, cause us to lose sight of the present. While the major changes in retirement income policy outcomes will not occur for some decades, the picture for current and recent cohorts of retired people is not static. This article begins with an account of the important policy developments since the 1980s in the Australian retirement income arena,the Australian retirement income system still differs radically from that in most other countries, in relying heavily on a means-tested income maintenance system, rather than on social insurance. The outcomes for current and recent cohorts of retired people are then examined from two perspectives. The first perspective is an examination of the incomes of the aged in the mid 1990s and of trends over the 1980s and 1990s,including consideration of changes in the level, composition and distribution of aged incomes. The second perspective is an international comparison of the incomes of the aged. [source] Retirement Incomes: Private Savings versus Social TransfersTHE MANCHESTER SCHOOL, Issue 5 2000John Creedy It has long been known, from the work of Samuelson and Aaron, that if (approximately) the sum of the population and real earnings growth rates exceeds the real interest rate, all individuals can be made better off by using a pay-as-you-go pension scheme. The basic overlapping generations model that is typically used to examine such intergenerational transfers makes no allowance for labour supply responses to taxes and transfers, and so cannot be used to examine optimal tax and pension levels. The present paper allows for labour supply effects, whereby a tax imposed to finance current pensions introduces distortions to labour supply and a reduction in the tax base. The optimal proportional tax rate, and therefore the optimal combination of private savings and social transfers, is derived in terms of the time preference rate, the taste for leisure, real interest and productivity and population growth rates. It is found that the condition under which the optimal tax is positive is the same as the Samuelson,Aaron condition. A crucial ingredient in obtaining this result is an assumption that pension levels are adjusted in line with the growth of wage rates rather than, for example, being held constant in real terms. This in turn is found to imply that earnings grow at the same rate as the wage, so long as preferences are such that leisure can be expressed as a proportion of full income. [source] Comparing the Pension Promises of 30 OECD CountriesINTERNATIONAL SOCIAL SECURITY REVIEW, Issue 3 2006Monika Queisser This paper takes a microeconomic approach to compare prospective pension benefits in the 30 OECD countries. It shows entitlements gross and net of taxes and social security contributions for male and female single workers based on 2002 pension rules and parameters. The models cover all public and private mandatory sources of retirement income for full-career private-sector workers across a broad earnings range. The paper shows that average earners in OECD countries can expect a post-tax pension of about 70 per cent of their earnings after tax. The average minimum retirement benefit is just under 29 per cent of national average earnings. [source] Thinking about ageing issuesINTERNATIONAL SOCIAL SECURITY REVIEW, Issue 1 2002Dalmer D. Hoskins Advances in longevity and falling birth rates have a profound impact on our societies, in both the industrialized and developing worlds. Demographic ageing is causing considerable concern, if not alarm, in many circles. Yet the public debate about the future of social security is often lacking in accurate and objective information. It is easier to focus on the "burden" of ageing on society than attempt to better understand the complex, interrelated nature of the issues involved, especially the rising numbers of persons of working age who are inactive and contributing neither taxes nor social security contributions. Whether the mode of pension financing is public or private, retirement income of the non-active older population must be paid out of the economic gains of the younger working population. Social security policy is all about making plans now for future generations. This means more carefully defining the terms of the public debate, articulating more clearly the desired objectives and policies. [source] Seeing is not enough: manipulating choice options causes focusing and preference change in multiattribute risky decision-makingJOURNAL OF BEHAVIORAL DECISION MAKING, Issue 5 2008Ivo Vlaev Abstract We show that preferences depend on the attributes that can be directly manipulated when people need to integrate multiple sources of information because direct manipulation causes focusing bias. This effect appears even when all relevant information is simultaneously and explicitly presented at the time the decisions are made. Participants decided how much to save, what investment risk to take and observed the future financial consequences in terms of the mean and variability of the expected retirement income. Participants who manipulated only the future income distribution saved more and took less risk. This effect disappears when the risk-related variables are removed, which indicates that task complexity is a mediator of such focusing effects. A more balanced trade-off between the choice attributes was selected when all attributes were manipulated. However, when there is a dichotomy between manipulating versus observing choice attributes, then decisions were based mostly on the manipulated attributes. Copyright © 2008 John Wiley & Sons, Ltd. [source] Survivor Derivatives: A Consistent Pricing FrameworkJOURNAL OF RISK AND INSURANCE, Issue 3 2010Paul Dawson Survivorship risk is a significant factor in the provision of retirement income. Survivor derivatives are in their early stages and offer potentially significant welfare benefits to society. This article applies the approach developed by Dowd et al. (2006), Olivier and Jeffery (2004), Smith (2005), and Cairns (2007) to derive a consistent framework for pricing a wide range of linear survivor derivatives, such as forwards, basis swaps, forward swaps, and futures. It then shows how a recent option pricing model set out by Dawson et al. (2009) can be used to price nonlinear survivor derivatives, such as survivor swaptions, caps, floors, and combined option products. It concludes by considering applications of these products to a pension fund that wishes to hedge its survivorship risks. [source] Public Pension Reform in the United Kingdom: What Effect on the Financial Well-Being of Current and Future Pensioners?,FISCAL STUDIES, Issue 1 2005Richard Disney Abstract Unlike many tax and benefit changes, reforms to public pension programmes take many years to have their full effect. This paper examines the effect of reforms to the public pension programme in the United Kingdom on the state retirement incomes of current generations of pensioners and on the prospective state incomes of future generations of pensioners. We show that, for an individual with lifetime earnings close to male average earnings, the UK pension system is at its most generous to those reaching the state pension age around the year 2000, but that the introduction of the state second pension and the pension credit postpones this peak for individuals on lower incomes and for those with substantial periods out of paid employment spent with caring responsibilities. We also consider how the ,mix' of benefits, particularly between the contributory and income-tested sectors, could change over time, and the impact that this would have on incentives to save for retirement. [source] A Model Under Siege: A Case Study of the German Retirement Insurance SystemTHE ECONOMIC JOURNAL, Issue 461 2000Axel Borsch-Supan This study evaluates the positive and negative features of the German public pension system and discusses three reasons for its increasing perceived and real difficulties: maturation, negative incentive effects, and the problems of demographic change. The German system in its current form may be able to limp through the coming decades but will cease to be the exemplary Bismarckian machine that has created generous retirement incomes at reasonable tax rates. Current policy proposals are insufficient and a few but incisive design changes and some degree of prefunding could rescue the many positive aspects of the German retirement insurance system. [source] | ||||||||||