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on Economics of Ageing |
| By: | Carmen Hoyo; David Tuesta |
| Abstract: | Real estate assets represent a major form of savings for families when they reach retirement age. Reverse mortgages are a financial product developed as an alternative way of generating flows of liquid income during retirement in some countries. As income during old age must be diversified from different sources, in this work we assess the potential of reverse mortgages as an alternative income stream in retirement. Our work focuses on Mexico, using projections of the replacement rate that would be received by an old-aged pensioner, only considering the pension from the Instituto Mexicano del Seguro Social (IMSS), whilst incorporating annuity income from the reverse mortgage. Using a macroeconomic-actuarial model to generate projections, we found that these rates could be increased by 45 percentage points by incorporating annuity income from real estate assets. This result reinforces the concept of establishing not only policies focused on improving formal pension schemes, but also of making private financial mechanisms available to generate other adequate income flows for old age based on alternative assets. |
| Keywords: | reverse mortgage, pensions, defined contribution |
| JEL: | G23 J32 G22 D14 G21 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:bbv:wpaper:1335&r=age |
| By: | Barbara A. Butrica; Nadia S. Karamcheva |
| Abstract: | Americans’ indebtedness has increased dramatically since the 1980s – a trend likely to have important implications for retirement security. This study finds that older adults with debt are 8 percentage points more likely to work and 2 percentage points less likely to receive Social Security benefits than those without debt. Not only does the presence of debt influence older adults’ behavior, but so do the amount and type of debt – particularly outstanding mortgages. Increasingly, retirement security will depend on having enough income and assets to pay for basic living expenses and to service debt. |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:crr:crrwps:wp2013-22&r=age |
| By: | David G. Lenze (Bureau of Economic Analysis) |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:bea:wpaper:0104&r=age |
| By: | D’Albis, H.; Bonnet, C.; Navaux, J.; Pelletan, J.; Toubon, H.; Wolff, F. C. |
| Abstract: | We use the National Transfer Accounts methodology to calculate the lifecycle deficit in France for the years 1979‐2005. During this period, consumption profiles were roughly constant over age, while labor income profiles shifted to higher ages. The share of the aggregate lifecycle deficit in GDP rose sharply in the 1980s due to an increase in the mean age of the population. In contrast, the per capita shares of the lifecycle deficit attributed to the population under 20 and over 60 varied little during this period, even though the relative weights of these two age‐segments has shifted continuously in favor of the latter. |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpm:docweb:1307&r=age |
| By: | Hitoshi Shigeoka |
| Abstract: | This paper exploits a sharp reduction in patient cost sharing at age 70 in Japan, using a regression discontinuity design to examine its effect on utilization, health, and financial risk arising from out-of-pocket expenditures. Due to the national policy, cost sharing is 60-80 percent lower at age 70 than at age 69. I find that both outpatient and inpatient care are price sensitive among the elderly. While I find little impact on mortality and other health outcomes, the results show that reduced cost sharing is associated with lower out-of-pocket expenditures, especially at the right tail of the distribution. |
| JEL: | I1 I11 I18 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19726&r=age |
| By: | Marc Patrick Brag Klemp; Niels Framroze Møller |
| Abstract: | Theories of economic growth hypothesize that the transition from pre-industrial stagnation to sustained growth is associated with a post-Malthusian phase in which technological progress raises income and spurs population growth while offsetting diminishing returns to labour. Evidence suggests that England was characterized by post-Malthusian dynamics preceding the Industrial Revolution. However, given England's special position as the forerunner of the Industrial Revolution, it is unclear if a transitory post-Malthusian period is a general phenomenon. Using data from Denmark, Norway and Sweden, this research provides evidence for the existence of a post-Malthusian phase in the transition from stagnation to growth in Scandinavia |
| Keywords: | Demography, Post-Malthusian Dynamics, Malthus, Pre-Industrial Scandinavia, Demographic Transition, Economic Growth |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:bro:econwp:2013-14&r=age |