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Social Security Contributions (social + security_contribution)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting50%

Selected Abstracts

Comparing the Pension Promises of 30 OECD Countries

INTERNATIONAL SOCIAL SECURITY REVIEW, Issue 3 2006
Monika 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 issues

INTERNATIONAL SOCIAL SECURITY REVIEW, Issue 1 2002
Dalmer 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]

On the Cost of Adverse Selection in Individual Annuity Markets: Evidence From Singapore

JOURNAL OF RISK AND INSURANCE, Issue 2 2002
Wai Mun Fong
New evidence is presented on the cost of adverse selection in individual annuity markets using Singapore data. The Singapore annuity market is an interesting setting to examine the cost of adverse selection for three reasons. First, unlike many Western countries, the Singapore government provides very limited public financial assistance for retirees. Second, while social security contributions mandated under the Central Provident Fund (CPF) result in a high forced savings rate, a large proportion of CPF savings, are used up for housing. Third, to ensure that retirees have sufficient funds to meet basic needs, individuals who reach age 55 are required to set aside a minimum amount of their CPF savings, which can be withdrawn at age 62. The CPF Board allows various options for investing the minimum sum, but the most attractive option is to purchase an annuity. The institutional setting in Singapore in effect provides insurers with a large captive market for annuities. It is conjectured that this should be reflected in a significantly lower cost of adverse selection for annuities sold in Singapore as compared with other countries. The results herein, using data for CPF-approved insurers, are strongly consistent with this conjecture. On average, money's worth of annuities is higher than annuities sold to a similar age-gender mix in the United States, United Kingdom, and Australia. Adverse selection accounts for less than 13 percent of the cost of longevity insurance compared to 30,50 per- cent documented in many previous studies. These results suggest that one way to resolve the adverse selection problem is to adopt a universal individual defined contribution pension scheme that mandates or provides strong incentives for retirees to purchase annuities. [source]

Implications of Singapore's CPF Scheme on Consumption Choices and Retirement Incomes

PACIFIC ECONOMIC REVIEW, Issue 3 2001
Kim-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]