|
on Economics of Ageing |
| By: | Sun, Jessica Ya (Huazhong University); Usui, Emiko (Hitotsubashi University) |
| Abstract: | This study uses data from the Singapore Life Panel to investigate the effects of age-related policy reforms on older adult labor supply behaviors in Singapore. We first evaluate the impact of the Retirement and Re-employment Act (RRA) reform in 2017, which raised the maximum re-employment age from 65 to 67 years for those who were able to claim pension benefits at age 64. We find that the RRA reform reduced the probability of unemployment among people aged 66 years by 5.8 percentage points and increased the probability to continue working in the longest-held job during the lifetime by 11.4 percentage points. Second, we examine the impact of the pension-eligibility age reform of 2018, which raised the pension-eligibility age from 64 to 65 years for those who were protected by the mandatory labor protection and re-employment policy up to the age of 67 years. This rise in the pension-eligibility age increased the probability of full-time employment by 8.2 percentage points and reduced the probability of part-time employment by 5.7 percentage points among people aged 64 years. These two reforms promoted employment among older adults in different ways. Specifically, enhanced employment protection at age 66 increased the older adults' labor supply in the extensive margin, resulting in a welfare improvement for older adults since those who had been underemployed were less likely to be so after the reform. Still, their ineligibility to claim their pension at age 64 lowered their economic well-being because it increased their labor supply in the intensive margin to supplement the delay in pension benefits. |
| Keywords: | pension reform, retirement, older adult, Singapore |
| JEL: | H55 J22 J26 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15537&r= |
| By: | Alicia H. Munnell |
| Abstract: | After nearly a century of decline, work activity among older men stabilized in the 1980s and began to increase in the 1990s. This turnaround reflected changes in Social Security, retirement plans, and the nature of work, improvements in educational attainment, the need to wait for Medicare coverage, and a number of other factors. In response, the average retirement age has increased by about three years. The goal of this brief is to put this three-year increase in context by: 1) comparing current labor force activity to that before the mid-1980s; and 2) assessing the extent to which the forces causing upswing may have played themselves out. Context is important when considering whether the recent increase in the average retirement age provides any rationale for changing Social Security, Medicare, and other programs that affect the well-being of older Americans. This discussion proceeds in three steps. The first section describes reasons for the long-run decline in labor force participation of men since the 1880s, and the second section discusses the factors responsible for the turnaround that began in the early 1990s. The third section takes a closer look at labor force activity among both older men and older women and constructs a measure of the average retirement age. The fourth section looks once again at the factors behind the recent turnaround to assess their likely future impact, finding that, for the most part, they have played themselves out. The final section concludes that while the labor force activity of older individuals has increased significantly in recent decades, participation is still below where it was when Medicare was enacted in 1965 and further increases in the average retirement age seem relatively unlikely. In short, the recent turnaround provides little basis for changing the parameters of Social Security or Medicare. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2022-11&r= |
| By: | Charles Yuji Horioka; Luigi Ventura |
| Abstract: | In this paper, we use micro data on a large number of European countries from the Survey of Health, Ageing and Retirement in Europe (SHARE) to examine the wealth accumulation (saving) behavior of the retired elderly in Europe. To summarize our main findings, we find that less than half of the retired elderly in Europe are decumulating their wealth and that the average wealth accumulation rate of the retired elderly in Europe is positive though relatively moderate (6.6% over a 3-year period). These findings strongly suggest that the Wealth Decumulation (or Retirement Saving) Puzzle (the tendency of the retired elderly to not decumulate their wealth or to decumulate their wealth more slowly than expected) applies in the case of Europe. Moreover, our regression results suggest that bequest motives, generous public pension systems, and the reluctance of retired elderly homeowners to sell or borrow against their owner-occupied housing are the primary explanations for the existence of the Wealth Decumulation Puzzle in Europe. |
| JEL: | D14 D15 D64 E21 H55 J14 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30470&r= |
| By: | Nino Abashidze; Robert L. Clark; Lee A. Craig |
| Abstract: | In recent decades, many states have reduced future retirement benefits for newly hired teachers. We estimate that in 2020 the average initial monthly retirement benefit, for teachers retiring with 30 years of service, is 11.2 percent lower than that of teachers retiring in the same plan with the provisions that were in place in 2000, implying a lower annual benefit of over $3,000. We examine why state plans that cover only teachers, along with plans in which teachers are not included in Social Security, have made smaller reductions in the generosity of their pension benefits in recent decades. |
| JEL: | H55 J26 J32 J45 N31 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30472&r= |
| By: | Jean-Pierre Aubry |
| Abstract: | Fiscal year 2022 has been difficult for state and local pension plans – with record investment losses and rising pension outlays due to inflation. This experience is in sharp contrast to 2021, when pension funds enjoyed higher investment returns, as well as increased contributions from sponsoring governments. This brief updates the status of state and local plans as of 2021 and uses what we know about 2022 to estimate their current condition. The discussion is organized as follows. The first section shows that, over the two-year period of 2021 and 2022, the funded ratio for public plans first rose and has since fallen back to about 74 percent. The second section explores how the recent rise in inflation affects pension outlays, arguing that limits to cost-of-living adjustments (COLAs) mute the impact of inflation on pension fund finances. The flip side, of course, is that the limited COLAs also erode the purchasing power of retiree pension benefits, which is especially harmful to those not covered by Social Security. The final section concludes that pension funds continue to muddle along, with the recent rise in inflation impacting the finances of retirees more than the pension funds themselves. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2022-13&r= |
| By: | Chen, Xi (Yale University) |
| Abstract: | This paper reviews the latest evidence of the effects of early life circumstances on old-age health, distinguishing in utero exposures from childhood exposures to a wide range of environments. We then leverage the growing number of studies of the impact of the Great Chinese Famine (1959-1961) on the health of older adults to perform a meta-analysis and discuss potential mechanisms. Recent studies assembling multiple domains of early life circumstances are evaluated to better understand how various circumstances may coalesce and manifest in shaping long-term health. |
| Keywords: | early life circumstances, old-age health, famine, long-term health, meta-analysis, China |
| JEL: | I14 J14 J13 I18 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15511&r= |
| By: | João Brogueira de Sousa; Julián Díaz-Saavedra; Ramon Marimon |
| Abstract: | In an overlapping generations economy with incomplete insurance markets, the introduction of an employment fund -akin to the one introduced in Austria in 2003, also known as `Austrian backpack'- can enhance production efficiency and social welfare. It complements the two classical systems of public insurance: pay-as-you-go (PAYG) pensions and unemployment insurance (UI). We show this in a calibrated dynamic general equilibrium model with heterogeneous agents of the Spanish economy in 2018. A `backpack' (BP) employment fund is an individual (across jobs) transferable fund, which earns a market interest rate as a return and is financed with a payroll tax (a BP tax). The worker can use the fund while unemployed or retired. Upon retirement, backpack savings can be converted into an (actuarially fair) retirement pension. To complement the existing PAYG pension and UI systems with a welfare maximising 6% BP tax would raise welfare by 0.96% of average consumption at the new steady state, if we model Spain as an open economy. As a closed economy, there are important general equilibrium effects and, as a result, the social value of introducing the backpack is substantially greater: 16.14%, with a BP tax of 18%. In both economies, the annuity retirement option is an important component of the welfare gains. |
| Keywords: | computable general equilibrium, welfare state, social security reform, Retirement |
| JEL: | C68 H55 J26 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1332&r= |
| By: | Matteo Bonetti |
| Abstract: | I use proprietary data on equity holdings to show that Dutch pension funds herd in individual securities. I introduce a pension fund-level measure of herding that identifies the extent to which a pension fund follows other pension funds into and out of the same securities over time. I show that pension funds that herd underperform pension funds that do not herd by 1.32% on an annual basis that indicates herding has a negative impact on performance. Small pension funds and pension funds that trade less frequently are more likely to herd. These pension funds herd consistently over time, hence they appear to make this decision strategically out of reputational concerns. |
| Keywords: | herding; investment skills; pension funds; performance; security selection |
| JEL: | G11 G23 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:729&r= |
| By: | Wenliang Hou |
| Abstract: | Planning for retirement has always been hard, because retirees face numerous risks – including outliving their money (longevity risk), investment losses (market risk), unexpected health expenses (health risk), the unforeseen needs of family members (family risk), and even retirement benefit cuts (policy risk). The questions are: 1) How important are these risks? and 2) Do retirees properly perceive these risks when making their consumption and investment decisions? To answer these questions, this brief, which is based on an earlier paper, systematically values and ranks the impacts of these various risks from both the objective and subjective perspectives. That is, it quantifies the magnitude of the objective risks that retirees face, repeats the exercise for retirees’ subjective perceptions of the risks, and then compares the two. The analysis, which uses data from the Health and Retirement Study, involves constructing a lifecycle optimization model to quantify each risk by estimating how much wealth retirees are willing to give up to insure against it. The discussion proceeds as follows. The first section presents the background on risks in retirement. The second section discusses the data and methodology. The third section presents the results, showing a significant disconnect between actual and perceived risk. The biggest risk in the objective ranking is longevity risk, followed by health risk and market risk. At the top of the subjective ranking is market risk, which reflects retirees’ exaggerated assessments of market volatility. Perceived longevity risk and health risk rank lower, because retirees are pessimistic about their survival probabilities and often underestimate their health costs in late life. The final section concludes that retirees’ misunderstanding of the importance of various retirement risks highlights the need for more education and provides unique insight into the need for lifetime income, either through Social Security or annuities, which hedge both longevity and market risks. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2022-10&r= |
| By: | Duncan Chaplin; Zachary A. Morris |
| Abstract: | This paper presents a framework for assessing the adequacy of disability benefit programs and then applies that framework to an analysis of two Social Security disability programs in the U.S.: Social Security Disability Insurance and Supplemental Security Income. The paper draws on survey data from the Health and Retirement Study linked to administrative records from the Social Security Administration, and further compares the U.S. estimates to those from 26 other countries using cross-nationally harmonized data from the Survey of Health, Ageing and Retirement in Europe. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:crr:crrwps:wp2022-08&r= |
| By: | Valerio Dotti (Department of Economics, University Of Venice CÃ Foscari) |
| Abstract: | We investigate the effects of (1) population ageing and (2) rising income inequality on immigration policies using a citizen-candidate model of elections. In each period, young people work and pay taxes while old people receive social security payments. Immigrants are all young, meaning they contribute significantly to financing the cost of public services and social security. Among natives, the elderly and the poor benefit the most from public spending. However, because these two types of voters do not internalise the positive fiscal effects of immigration, they have a common interest in supporting candidates who seek to curb immigration and increase the tax burden on high-income individuals. Population ageing and rising income inequality increase the size and, in turn, the political power of such sociodemographic groups, resulting in more restrictive immigration policies, a larger public sector, higher tax rates, and lower societal well-being. Calibrating the model to UK data suggests that the magnitude of these effects is large. The implications of this model are shown to be consistent with patterns observed in UK attitudinal data. |
| Keywords: | Immigration, Ageing, Policy, Voting |
| JEL: | D72 J61 J14 H55 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2022:14&r= |
| By: | Barschkett, Mara (DIW Berlin and FU Berlin); Geyer, Johannes (DIW Berlin and Netspar); Haan, Peter (DIW Berlin, FU Berlin and Netspar); Hammerschmid, Anna (DIW Berlin) |
| Abstract: | This study analyzes the causal effect of an increase in the retirement age on health. We exploit a sizable cohort-specific pension reform for women using two complementary empirical approaches – a Regression Discontinuity Design and a Difference-in-Differences approach. The analysis is based on official records covering all individuals insured by the public health system in Germany and including all certified diagnoses by practitioners. This enables us to gain a detailed understanding of the multi-dimensionality in these health effects. The empirical findings reflect the multi-dimensionality but allow for deriving two broader conclusions. We provide evidence that the increase in the retirement age negatively affects health outcomes as the prevalence of several diagnoses, e.g., mental health, musculoskeletal diseases, and obesity, increases. In contrast, we do not find support for an improvement in health related to a prolonged working life since there is no significant evidence for a reduction in the prevalence of any health outcome we consider. These findings hold for both identification strategies, are robust to sensitivity checks, and do not change when correcting for multiple hypothesis testing. |
| Keywords: | Germany; retirement; pension reform; health; ICD-10; regression discontinuity design; difference-in-differences; |
| JEL: | I10 I12 I18 J14 J18 J26 |
| Date: | 2021–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:302&r= |
| By: | Melissa McInerney; Matthew S. Rutledge; Sara Ellen King |
| Abstract: | The 14.5-percent increase in Medicare’s Part B premium for 2022 was a shock for many, raising a broader concern about the burden of out-of-pocket (OOP) health care spending on retirees. One way to gauge this burden is to look at how much OOP costs eat into retirees’ Social Security benefits and other income. OOP costs include Medicare premiums for Parts B and D and any supplemental coverage; cost sharing for Medicare-covered services; and the full cost of services not covered by Medicare, such as dental and vision. This brief, which updates an earlier study, looks at the extent to which OOP medical expenses affect retirees’ finances. Specifically, it uses the 2018 Health and Retirement Study to calculate the share of Social Security benefits and total income available for non-medical spending and explores how this measure differs by gender, age, health status, income, and supplemental insurance coverage. The discussion proceeds as follows. The first section provides background on OOP spending. The second section discusses the data and methodology. The third section presents the results, showing that – for the median retiree – only 75 percent of Social Security benefits and 88 percent of total income are available for non-medical spending. The final section concludes that, with such a substantial portion of their income going to medical costs, retirees’ finances are more precarious than Social Security benefit levels alone might suggest. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2022-12&r= |
| By: | Duncan Chaplin; Gal Wettstein; Nilufer Gok; Anqi Chen; Alicia H. Munnell |
| Abstract: | The mortality burden of the COVID-19 pandemic was particularly heavy among older adults, racial and ethnic minorities, and those with underlying health conditions. These groups are known to have higher mortality rates than others even in the absence of COVID. Using data from the 2019 American Community Survey, the 2018 Health and Retirement Study, and the 2020 National Vital Statistics System, this paper estimates how much lower the overall mortality rate will be for those who lived through the acute phase of the early pandemic after accounting for this selection effect of those who died from COVID. Such selection may have implications for life insurance and annuity premiums, as well as assessments of the financial standing of Social Security – if the selection is large enough to substantially alter projected survivor mortality. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:crr:crrwps:wp2022-10&r= |
| By: | Duncan Chaplin; Zachary A. Morris |
| Abstract: | The objective of this paper is to analyze why older adults with disabilities experienced greater financial hardship during the COVID-19 pandemic. It is hypothesized that increased household spending during the pandemic due to increased disability-related costs, and not job loss, mediated the relationship between disability and financial insecurity. The paper analyzes data for adults ages 51 and older from the U.S. Health and Retirement Study (HRS) 2020 survey, which was carried out from March 2020 to May 2021 (N=13,083). |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:crr:crrwps:wp2022-09&r= |
| By: | Susann Rohwedder; Michael D. Hurd; Péter Hudomiet |
| Abstract: | We use new data from the 2019 wave of the Consumption and Activities Mail Survey to help interpret the observed decline in spending as individuals age. At one extreme, forward-looking individuals optimally chose the decline; at the other, myopic individuals overspent and were forced to reduce spending because they had run out of wealth. Which interpretation is correct has important implications for the measurement of economic preparation for retirement. According to their own assessments, the fraction of respondents feeling financially constrained is lower at advanced ages, and the fraction satisfied with their economic situation is considerably higher at older ages than at ages near retirement. An important mechanism reconciling the evidence of reduced spending and greater economic satisfaction at older ages may be that individuals’ enjoyment of several activities declines with worsening health, widowing, and increasing age, leading to a lessening desire to spend on them. We find strong support for this hypothesis. Nonetheless, close to 20% of those older than 80 report not being satisfied with their financial situation, pointing to heterogeneity in economic security. |
| JEL: | E21 J14 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30460&r= |
| By: | Daron Acemoglu; Nicolaj Søndergaard Mühlbach; Andrew J. Scott |
| Abstract: | In 1990, one in five U.S. workers were aged over 50 years whereas today it is one in three. One possible explanation for this is that occupations have become more accommodating to the preferences of older workers. We explore this by constructing an “age-friendliness” index for occupations. We use Natural Language Processing to measure the degree of overlap between textual descriptions of occupations and characteristics which define age friendliness. Our index provides an approximation to rankings produced by survey participants and has predictive power for the occupational share of older workers. We find that between 1990 and 2020 around three quarters of occupations have seen their age-friendliness increase and employment in above-average age-friendly occupations has risen by 49 million. However, older workers have not benefited disproportionately from this rise, with substantial gains going to younger females and college graduates and with male non-college educated workers losing out the most. These findings point to the need to frame the rise of age-friendly jobs in the context of other labour market trends and imperfections. Purely age-based policies are insufficient given both heterogeneity amongst older workers as well as similarities between groups of older and younger workers. The latter is especially apparent in the overlapping appeal of specific occupational characteristics. |
| JEL: | E24 J11 J24 J62 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30463&r= |
| By: | Karalos Arapakis |
| Abstract: | One source of financial risk that older Americans face is high health care expenses. Although the largest share of these expenses is due to predictable insurance premiums,retirees can pay sizable additional out-of-pocket costs as well. Medicare and Medicaid help reduce this risk, but Medicare does not cover every expense and Medicaid covers only households with very low income and assets. Thus, better understanding the extent of this coverage and the remaining burden on individuals is an important issue for retirees and policymakers alike. This brief is based on a recent paper that addresses the following question: How much do retirees pay in lifetime out-of-pocket health costs, excluding premiums and including long-term care? The analysis proceeds in two steps. It first calculates the distribution and evolution of total non-premium health care spending over the lifecycle of retired households. It then determines the amount covered by public and private insurers and subtracts this portion from the total to obtain out-of-pocket spending. By focusing on lifetime totals, this brief captures not only the risk of high expenses in a single year, but also the risk of moderate but persistent expenses that add up to a high cost burden over time. The discussion proceeds as follows. The first section provides a brief background on health care spending and insurance programs. The second section describes the data and methodology. The third section presents the results: total spending on health services, the portion covered by insurance, and what retirees pay out-of-pocket. The final section concludes that lifetime health care spending by retirees above and beyond predictable premiums is high and uncertain. However, Medicare, Medicaid, and other insurers cover a large portion of these expenditures. As a result, 65-year-old households pay, on average, $67,260 in out-of-pocket costs over their remaining lifetime, which is about one-fifth of total non-premium costs. Households at the 90th percentile of the health spending distribution pay twice this amount out-of-pocket, though it represents a similar share of the total. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2022-14&r= |
| By: | Angelino Viceisza; Amaia Calhoun; Gabriella J.O. Lee |
| Abstract: | We review select literature on racial and ethnic disparities in retirement outcomes and the impact of outreach on such outcomes. First, there are significant disparities in retirement outcomes, reflecting a long history of racism and structural barriers. Second, there is comparatively little work on the differential impact of retirement outreach across race and ethnicity. Future work should consider designing interventions that cater to the needs of specific demographic groups, for example, by embracing the fact that Blacks, Hispanics, and Whites acquire retirement information from different sources. Future work should also innovate on methodologies for data collection, linking, and analysis. |
| JEL: | D83 J15 J26 J32 Z13 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30456&r= |
| By: | Idris Osman (Faculty of Business and Management, Universiti Teknologi MARA, Malaysia Author-2-Name: Siti Nurhanis Mohd Fadzil Author-2-Workplace-Name: Faculty of Business and Management, Universiti Teknologi MARA, Jalan Ilmu 1/1, 40450, Shah Alam Selangor, Malaysia Author-3-Name: Shafinar Ismail Author-3-Workplace-Name: "Faculty of Business and Management, Universiti Teknologi MARA, Cawangan Melaka, Kampus Bandaraya Melaka, 110 Off Jalan Hang Tuah, 75300, Malaysia" Author-4-Name: "Maryam Jameelah Mohd Hashim" Author-4-Workplace-Name: "Faculty of Business and Management, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Bandar Puncak Alam, 42300, Selangor, Malaysia" Author-5-Name: Mohd Rahim Khamis Author-5-Workplace-Name: "Faculty of Business and Management, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Bandar Puncak Alam, 42300, Selangor, Malaysia" Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Purpose - The World Health Organization claims that in almost every nation, including Malaysia, the number of persons over 60 rises more quickly than in any other age group. A significant worry for health and quality of life is how to mature successfully and accept well-being. Considerable interest is also being shown in well-being-related topics. As a result, this study will look at the social variables, such as social networks, social support, and social activities, that can significantly boost elderly wellbeing. Methodology - Using purposive sampling techniques, 200 structured questionnaires were distributed to Malaysian seniors ages 60 and above. However, only 150 usable questionnaires were completed. This work examined the research model using partial least square structural equation modelling (PLS-SEM). Findings - The results show that social networks significantly influence elderly well-being. However, no significant correlations were discovered between social activities, social support, and elderly well-being. Furthermore, the research model explains 63.1% of the substantial variation in elderly well-being. This study used the social theory of aging to comprehend the social elements that affect the well-being of the elderly. Novelty - The health of Malaysia's senior population has long-term economic and social advantages, making this study crucial. As a result, it needs to be significantly upgraded and improved by putting applicable rules and standards in place. Type of Paper - Empirical" |
| Keywords: | Social networks; social support; social activities; well-being; elderly |
| JEL: | I38 J14 |
| Date: | 2022–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jmmr302&r= |
| By: | Chung Shin Fung (Business Healthcare Management, International Medical University, Kuala Lumpur, Malaysia Author-2-Name: Safurah Jaafar Author-2-Workplace-Name: Business Healthcare Management, International Medical University, Kuala Lumpur, Malaysia Author-3-Name: Roslan Mohd Ismail Author-3-Workplace-Name: Business Healthcare Management, International Medical University, Kuala Lumpur, Malaysia Author-4-Name: Azrin Syahida Abd Rahim Author-4-Workplace-Name: Business Healthcare Management, International Medical University, Kuala Lumpur, Malaysia Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - Demands for Urban Retirement Environments have attracted much attention in the industry for senior citizens. This study aimed to examine the socio-demographic profile and antecedent factors influencing adults' decisions and preparedness toward retirement environment facilities in two urban settings. Methodology/Technique - This study uses a quantitative cross-sectional approach using the descriptive-normative survey method with a modified self-administered questionnaire. Data was collected in Greater Kuala Lumpur and Kota Kinabalu. Mail survey respondents returned 369 usable questionnaires yielding a 14.5% response rate. Hypotheses were analyzed using the structural model. Finding - The study found that the urban population was receptive to retirement preparation with financial Planning and health insurance commitments. The majority, 72%, engaged with exercise and 80% with lifelong learning activities and profited from a better health status. In addition, 69% to 72% were more well-prepared to welcome home care and daycare service packages. However, it was a natural preference to accept lower fees up to RM300, even though most hold health insurance plans, and the higher-income respondents with more than RM75,000 annual income showed a willingness to pay between RM1000 to RM5000 for institutional care services. Novelty - This study has examined significant relationships between the level of retirement preparedness, namely the three elements, financial Planning, health insurance, and lifelong Learning, with their socio-demographic profile. It also provides the gaps and potential greenfield versus brownfield areas for investment. The aged care providers and insurance companies have a potential niche market in developing and collaborating using the above elements in developing retirement insurance and investment package strategies. Together they can generate more options to build sustainable retirement environment business agenda. Type of Paper - Empirical" |
| Keywords: | Retirement, Financial Planning, Health Insurance, Lifelong Learning, Technology Advancement |
| JEL: | I11 I12 I13 |
| Date: | 2022–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:gjbssr625&r= |
| By: | van Dalen, Hendrik Peter (Tilburg University, School of Economics and Management); Henkens, C.J.I.M. (Tilburg University, School of Economics and Management) |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:81674c16-baa1-426b-aafd-fd1fdbb29a2f&r= |
| By: | Martina Celidoni; Joan Costa-i-Font; Luca Salmasi |
| Abstract: | Longevity expectations (LE) are subjective assessments of future health status that can influence a number of individual health protective decisions. This is especially true during a pandemic such as COVID-19, as the risk of ill health depends more than ever on such protective decisions. This paper exploits differences in LE to examine the causal effect of LE on protective health behaviours and a number of decisions around access to health care, using data from the Survey of Health Ageing and Retirement in Europe. We draw on an instrumental variable strategy exploiting individual level information on parental age at death. Consistent with the too healthy to be sick hypothesis, we find that individuals with higher expected longevity are more likely to engage in protective behaviours, and are less likely to forgo medical treatment. We estimate that a one standard deviation increase in expected longevity increases the probability to comply always with social distancing by 0.6%, to meet people less often by 0.4% and decreases the probability to forgo any medical treatment by 0.6%. Our estimates vary depending on the availability of health care, as well as individuals' gender and pre-existing health conditions. |
| Keywords: | longevity expectations, private information, health behaviours, forgone medical treatment, health capital, SHARE, Europe, instrumental variables |
| JEL: | I12 I18 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9899&r= |
| By: | Alicia H. Munnell |
| Abstract: | The 2022 Trustees Report contains no real news about the overall future of the Social Security program. The Trustees did not change any of the ultimate economic or demographic assumptions, and the 75-year deficit declined only very slightly – 3.42 percent of taxable payrolls in 2022 compared to 3.54 percent in 2021. The year for depletion of trust fund assets increased by one year – from 2034 to 2035. Note these calculations were done in February 2022, and the future path of the economy looks more uncertain than it did earlier in the year. One factor contributing to the stability in the longrun picture is the more sanguine assessment of the Disability Insurance component of the program. To reflect the continued decline in caseloads, the Trustees reduced the assumed long-range disability incidence rate. At this point, the Disability Insurance trust fund, which pays disability benefits, is no longer projected to be depleted within the 75-year projection period. This brief updates the numbers for 2022 and puts the current Report in perspective. It also briefly discusses developments on the disability front and strongly rebuts the repeated contention that retirees are particularly hurt by inflation because they "live on fixed incomes." The bottom line, however, is that the program continues to run a 75-year deficit of roughly 3.5 percent of taxable payrolls, and the trust fund will be depleted by 2035, after which the program can pay only about three quarters of benefits. None of this is new; Social Security’s shortfall over the next 75 years has been evident for the last three decades. It should be addressed sooner rather than later in order to share the burden more equitably across cohorts, restore confidence in the nation’s major retirement program, and give people time to adjust to needed changes. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2022-9&r= |
| By: | Enriqueta Camps |
| Abstract: | This paper wants to enlarge evidence presented in the exploratory article by Camps and Engerman, “World Population Growth: The Force of Recent Historical Trends”, Journal of Interdisciplinary History, 44:4, 2014. Before the worldwide epidemic impact on mortality caused by Covid 19, world population was growing at a fast track. By 2005-2010 United Nations authorities and the World Bank were regarding population growth vis-à-vis resource availability as an important economic problem in the mid run. The origin of this sort of ideas dates back at least to Malthus on population pressure, diminishing marginal returns of land, scarcity of calories and therefore increase of prices. Before the first industrial revolution only epidemics could threat population growth as to loosen pressure on economic resources. The situation in the period we want to study is very different. By the second half of the 20th century the main reason behind population growth was the great improvement of life expectancies. In OECD countries life expectancies nearly doubled during the 20th century. The overall world situation was one of convergence. All continents with the exception of Africa were improving their mortality conditions. But Camps and Engerman (2014) prove that these facts were counterbalanced in years 1960-2010 by a similar in intensity but opposite in direction trend of fertility. In all continents with the exception of Africa fertility was diminishing, converging to low levels, though with some delay with respect to mortality, causing the population explosion (demographic transition). A very significant variable when explaining fertility evolution is female’s education. One year more of education of mothers led to 0,33 less children per couple. Pandemics, different marriage patterns (polygamy), poverty and a different role of children for the family economy draw a different picture in African countries. In this paper we present further quantitative evidence on the impact of population growth, using population growth as an approximate proxy of the aggregated demand evolution at the world level, on prices and output as well as the population growth projections of the twenty first century. |
| Keywords: | world population growth, sustainability |
| JEL: | A11 A12 I15 J11 N3 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1354&r= |