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on Economics of Ageing |
| By: | Robert L. Clark; Denis Pelletier; Beth Ritter |
| Abstract: | Distribution choices by individuals retiring from CalSTRS are examined for participants that retired between 2016 and 2023. Women are much more likely to select a member-only annuity while a larger proportion of men select a J&S annuity that provide survivor benefits. Being married is a dominant factor in the selection of J&S annuities. Greater final annual salary, older ages at retirement, and more years of service are associated with a greater probability of choosing a J&S annuity. We also find that benefit choices from the primary benefit plan are jointly determined with distributions chosen from the supplemental pension plan. Interestingly, about half of retirees select a lump sum distribution from the supplemental plan while receiving an annuity from their primary plan. |
| JEL: | H75 J14 J16 J26 J32 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32631 |
| By: | Walwei, Ulrich (Institute for Employment Research (IAB), Nuremberg, Germany) |
| Abstract: | "In Germany, as in many other countries in the western world, the baby boomers are reaching retirement age. As fewer young workers are entering the labour market than older workers are leaving due to low birth rates, the labour force workers is falling, all other things being equal. At the same time, the funding problems in the pension insurance system are growing, as fewer and fewer people are paying into the pension scheme, particularly in the internationally widespread pay-as-you-go systems. At the same time the proportion of pensioners is growing. Against this backdrop, the labour market participation of older people is increasingly coming into focus. The report begins with an overview of older people's labour force participation in a broader international comparison. This is followed by a description of the situation in Germany. A closer look will then be taken at the countries that are at the forefront of older people's labour force participation. The aim is to obtain indications of the factors that may have contributed to the high level of employment among older people in these countries. The Federal Republic of Germany has clearly caught up in the employment of older people in recent decades. This applies in particular to the 50-64 age group. Compared to the leading countries, Germany is only a few percentage points behind. However, the 65-74 age group is still lagging further behind. The future gap to other countries in this age group will be influenced by opposing developments. The further steps towards "retirement at 67" are likely to reduce it further, but the "retirement at 63" will slow it down. However, Germany is still outperformed by some countries in terms of the employment rates of older people. This raises the question of what factors could be behind the favourable development of the labour market for older people in these countries. For the purposes of comparison, this report takes a closer look at the situation in Japan, New Zealand, Iceland, Norway and Sweden, all of which have even higher employment rates for older people than Germany. Various aspects that are important for the employment of older people are analysed in turn from an international comparative perspective. The country comparison reveals a number of important points that could be considered in Germany. The high level of employment among older people in Iceland, Sweden and Norway is linked to the high female labour force participation rate in both countries and continuous improvements in the educational level of the population, including further vocational training. New Zealand has a low pay gap between older and younger workers and comparatively high hiring rates for older workers, following a consistent and publicly visible anti-discrimination policy. In Japan, demographic pressure on labour demand and income requirements at the individual level is of significant importance. High and even higher employment rates for older people are not an automatic mechanism. They require good education and qualifications at the individual level as well as the opportunity and ability to engage in lifelong learning. Preventive healthcare is also required for a long working life, which, like education, is best started as early as possible. High employment rates among older people are not only favoured by individual employability, but also by the attractiveness of the labour market and thus the availability of employment for older workers. The more it is possible to address the skills and abilities of older workers, organise age-appropriate work and respond flexibly to employees' wishes, the greater the chance of retaining older workers in the labour market or of winning them back. Finally, regulations and support programmes that provide incentives for employment in old age should also be considered. These include the flexibility of pension entitlement, more favourable labour law provisions for continued employment in old age, the longer period of unemployment benefit for older people, their inclusion in active labour market policy and a review of the regulations in the citizen's allowance that favour early retirement, such as the waiting periods for assets and housing." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Open-Access-Publikation |
| Date: | 2024–07–09 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabfob:202414 |
| By: | Renaud Bourlès (Aix Marseille Univ, CNRS, AMSE, Marseille, France); Santiago López-Cantor (Aix-Marseille Univ., CNRS, AMSE, Marseille, France.) |
| Abstract: | Public pension schemes serve as mechanisms for inter-temporal income smoothing and within-cohort redistribution. This paper examines the influence of income and lifespan inequalities on the structure of a democratically chosen tier-pension scheme. We use a probabilistic voting model where agents vote on the size and the degree of redistribution (i.e. the Beveridgean factor) of the pension scheme and can supplement it with voluntary contributions. Our analysis reveals that when all agents can supplement the public scheme with private contributions, their voting behavior depends solely on the share of total income redistributed through the pension system, referred to as the redistributive power of the pension. Income inequality positively correlates with the equilibrium redistributive power, while lifespan inequality exhibits the opposite effect, leading to a resource-time trade-off; particularly when both inequality measures are correlated. In scenarios where low earners are hand-to-mouth and unable to make voluntary contributions, the effects on pension size (through mandatory contributions) and degree of redistribution become disentangled. Income inequality diminishes pension size while augmenting redistribution, whereas lifespan inequality increases pension size while reducing redistribution. We provide empirical evidence from OECD countries supporting these theoretical findings and calibrate the model on French data to quantify the effects. |
| Keywords: | Tier pensions, Inequality, income, lifespan, intra-generational redistribution. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:aim:wpaimx:2420 |
| By: | Jonathan Reuter |
| Abstract: | I review the academic literature on defined contribution retirement plan design and participant behavior. While adoption of automatic enrollment has significantly increased participation rates, recent studies find the long-run effects on savings are smaller than the short-run effects, with some savings financed via debt. I also review efforts to expand access to employer-based retirement savings and liquid savings, the pros and cons of target date funds as default investment options, potential conflicts of interest in plan design, and potential benefits of customized defaults. I conclude by discussing how SECURE 2.0 may impact US workers and highlighting topics for future research. |
| JEL: | D14 D91 G11 J26 J32 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32653 |
| By: | Emma Aguila; Raquel Fonseca |
| Abstract: | This study explores how basic income for elderly (non-contributory pension program) affects the health of self-employed and salaried workers differently, which is particularly interesting given the greater social protection and lower income volatility of the latter. The study uses a cluster-randomized controlled trial that provides supplemental incomes to adults aged 70 or older in two towns in Yucatan, Mexico, and compares the effects of supplemental income over two waves for Valladolid (where eligible individuals received a monthly income supplement throughout the analysis period) and Motul (a demographically matched control town). The results indicate that self-employed workers experience a decrease in anemia, an improvement in peak expiratory flow, and better health care use and well-being. In contrast, salaried workers' health outcomes show no significant effect from the program. The program improves food availability for both self-employed and salaried workers, but its impact on food availability is stronger for self-employed workers. Cette étude examine comment le revenu de base pour les personnes âgées (programme de pension non contributif) affecte différemment la santé des travailleurs indépendants et des travailleurs salariés, ce qui est particulièrement intéressant compte tenu de la plus grande protection sociale et de la plus faible volatilité des revenus de ces derniers. L'étude utilise un essai contrôlé randomisé en grappes qui fournit des revenus supplémentaires aux adultes âgés de 70 ans ou plus dans deux villes du Yucatan, au Mexique, et compare les effets du revenu supplémentaire sur deux vagues pour Valladolid (où les personnes éligibles ont reçu un supplément de revenu mensuel tout au long de la période d'analyse) et Motul (une ville de contrôle appariée sur le plan démographique). Les résultats indiquent que les travailleurs indépendants connaissent une diminution de l'anémie, une amélioration du débit expiratoire maximal, ainsi qu'une meilleure utilisation des soins de santé et un meilleur bien-être. En revanche, le programme n'a pas eu d'effet significatif sur la santé des travailleurs salariés. Le programme améliore la disponibilité alimentaire tant pour les travailleurs indépendants que pour les salariés, mais son impact sur la disponibilité alimentaire est plus important pour les travailleurs indépendants. |
| Keywords: | Supplemental income, elderly, Mexico, health, lifetime occupation, Revenu complémentaire, personnes âgées, Mexique, santé, occupation à vie |
| JEL: | I32 I14 J14 |
| Date: | 2024–07–15 |
| URL: | https://d.repec.org/n?u=RePEc:cir:cirwor:2024s-04 |
| By: | Elena Pirani (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze); Maria Veronica Dorgali (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze); Valentina Tocchioni (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze); Alessandra Petrucci (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze) |
| Abstract: | In this study, we contribute to the growing, albeit still limited, body of research on the importance of the living environment for individual well-being, focusing on the population aged 65 and over in Italy. We explore life satisfaction, a cognitive component of an individual’s well-being that may help evaluate individuals’ ability to adapt to life changes and challenges of ageing. We investigate various aspects of the living environment, both the indoor characteristics of the housing – its quality and adequacy – and the outdoor features of the immediate neighbourhood environment – its liveability and accessibility. The study provides robust evidence that adequate housing conditions might positively influence the life satisfaction of Italian older adults. Besides, we found that aspects relative to the living environment – namely area friendliness, its maintenance and (absence of) pollution, and the ease of access to shops and services are valuable for a satisfying life. Importantly, whether an inevitable overlap between these characteristics may exist, both housing and neighbourhood living conditions, in their various facets, exert a separate, specific, and substantial role in life satisfaction. Our results might inform city planning interventions about the advantages of creating friendly communities and well-designed urban spaces to support active ageing. |
| Keywords: | living environment, well-being, older adults, composite indicators, Italy |
| JEL: | I31 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:fir:econom:wp2024_06 |
| By: | Miguel Ángel García Díaz |
| Abstract: | Las pensiones son objeto de continua atención en la sociedad al afectar de una manera u otra a casi toda la población cuando desarrollan su vida profesional o cuando la han finalizado, generando también intensas repercusiones en términos electorales. Por su gran impacto en diferentes ámbitos conviene disponer de información completa y detallada sobre las variables que inciden sobre el sistema de pensiones, que permitan realizar una valoración real y ajustada de la actual situación y las perspectivas de futuro. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:fda:fdaeee:eee2024-21 |
| By: | Charles Yuji Horioka (Research Institute for Economics & Business Administration (RIEB), Kobe University, Institute of Social and Economic Research, Osaka University, Asian Growth Research Institute, and National Bureau of Economic Research, JAPAN); Emin Gahramanov (School of Business Administration, Department of Economics, American University of Sharjah, UAE); Xueli Tang (Faculty of Business and Law, Deakin University, AUSTRALIA) |
| Abstract: | The purpose of this paper is to conduct a theoretical and empirical analysis of the nexus between long-term care insurance (LTCI), formal care, informal (family) care, and bequests. In our empirical analysis, we use micro data from the Japan Household Panel Survey on Consumer Preferences and Satisfaction (JHPS-CPS), formerly known as the Preference Parameter Study, conducted by Osaka University. Japan is an interesting case to analyze because a public LTCI system was introduced there in 2000. Our analysis shows that, in the case of Japan, if parents are eligible for public LTCI benefits, their children will be less likely to be their primary caregiver and that this, in turn, will reduce their children's perceived likelihood of receiving a bequest from them. This result implies that bequests are selfishly or strategically motivated (i.e., that parents leave bequests to their children in order to elicit care from them) and that the introduction of a public LTCI system will reduce the likelihood of children providing care to their parents and through this channel reduce their perceived likelihood of receiving a bequest from them. |
| Keywords: | Altruistic bequests; Bequests; Caregiving; Elderly care; Family care; Formal care; Informal care; Long-term care; Long-term care insurance; Parental care; Selfish bequests; Strategic bequests |
| JEL: | D11 D12 D15 D64 E21 I13 J14 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:kob:dpaper:dp2024-24 |
| By: | Wu, Qi; Liu, Shuyun; Fan, Shenggen |
| Keywords: | International Development, Labor And Human Capital, Environmental Economics And Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343729 |