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on Economics of Ageing |
| By: | Linden, Mikael |
| Abstract: | Paper proposes a model of retirement duration maximization based on retiree’s ex-ante intended retirement age and subjective survival time estimate. The optimum result needs that retirement age is an increasing convex function of survival time estimate supporting postponed retirement age with longer intended retirement duration. As a result, the average actual observed retirement duration is less than the intended duration. The result is valid irrespectively of biasedness of subjective survival estimates |
| Keywords: | Optimal retirement age, intended retirement duration, subjective survival time estimates, convex function |
| JEL: | C41 D81 J14 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115903&r=age |
| By: | Johannes W. Fedderke; Neryvia Pillay Bell |
| Abstract: | Using administrative data, we examine three characteristics of the South African retirement fund industry–funding stability, risk sharing and efficiency–over the period 1996-2018. We find that there have been significant decreases in assets per member for private funds, pension funds and retirement annuities, which could reflect decreasing funding ratios in the retirement fund system. The retirement […] |
| Keywords: | annuity, funding, funding initiative, Retirement fund, South Africa |
| JEL: | D14 D81 G23 G51 H55 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:880&r=age |
| By: | Hans Fehr; Adrian Fröhlich |
| Abstract: | This paper develops a general equilibrium life-cycle model with endogenous retirement and disability risk, in order to quantify the impact of recent pension reforms in Germany. At certain ages households may either apply for disability pensions (DP) or old-age pensions (OAP), de-pending on eligibility rules and the generosity of the two programs. Our policy analysis focus on the increase in the normal retirement age (NRA) from age 65 to 67 (Reform 2007) and the recent increase in the maximum assessment age (MAA) for DP benefits (Reform 2018). In contrast to the first reform, the second reform received hardly any attention in the public pension debate in Germany. Our simulation results indicate that with current eligibility and benefit rules, the second reform will almost neutralize the financial and economic benefits of the first reform. Consequently, securing the financial stability of the system will require a tightening of eligibility rules and/or a reduction of early retirement benefits in the future. |
| Keywords: | overlapping generations, stochastic general equilibrium, endogenous retirement, disability pensions |
| JEL: | C68 D91 H55 J24 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10166&r=age |
| By: | Honsoo Kim (Hansun Foundation); Soojin Kim (Georgia State University); Wonshik Kim (Georgia State University); Kyung Hoon Yang (University of Wisconsin, La Crosse) |
| Abstract: | Long-term care expenses pose a large financial risk to the elderly. In 2008, South Korea introduced a public long-term care insurance (LTCI) program for individuals older than 65. We study the dynamic effects of the LTCI on various healthcare expenditures. We find that after the implementation of the LTCI, average prescription drug and outpatient expenditures of the elderly increased. Dynamically, we observe that the growth in these expenditures moderates. We also find suggestive evidence that after the LTCI program, the elderly utilize LTC hospitals, substituting out of inpatient hospital services. These findings underscore the importance of understanding the long-term effects of LTCI on health and healthcare expenditures of the elderly and the need to account for such interactions in policy design. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper2209&r=age |
| By: | Denis Fougère (OSC - Observatoire sociologique du changement (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po, CEPR - Center for Economic Policy Research - CEPR, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Hippolyte d'Albis (CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Pierre Gouedard (OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | This paper proposes an evaluation of the pre-retirement consequences of a reform of the Frenchpension system that increased the minimum legal retirement age. Our empirical strategy relies onthe comparison of two groups of cohorts. The control group consists of cohorts not affected by theincrease in the minimum legal retirement age while the treatment group consists of cohorts bornlater. Using a sample of 38, 652 high-school teachers, we identify the effect of increasing theminimum retirement age on short sick leaves (i.e., of less than three months) by comparingprobabilities to take at least one sick leave during a schooling year before retirement across thetwo groups. Estimates of panel data models show that teachers affected by the reform have anincreased probability to take short sick leaves before retirement. This is mainly due to teacherswho decide to retire at the minimum legal retirement age, while those who continue to work abovethe minimum retirement age do not increase the frequency of their short sick leaves beforeretirement. This last result is predicted by a theoretical model that analyzes the optimal retirementchoice over the life-cycle, and it is confirmed by using an empirical strategy that distinguishesteachers according to their retirement age. |
| Keywords: | Teachers' absenteeism, Sick leaves, Retirement age, Pension reform |
| Date: | 2021–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:halshs-03098517&r=age |
| By: | Damiaan H.J. Chen (University of Amsterdam); Roel M.W.J. Beetsma (University of Amsterdam); Sweder J.G. van Wijnbergen (University of Amsterdam) |
| Abstract: | We explore how members of a collective pension scheme can share inflation risks in the absence of suitable financial market instruments. Using intergenerational risk sharing arrangements, risks can be allocated better across the various participants of a collective pension scheme than would be the case in a strictly individual- or cohort-based pension scheme, as these can only lay off risks via existing financial market instruments. Hence, intergenerational sharing of these risks enhances welfare. In view of the sizes of their funded pension sectors, this would be particularly beneficial for the Netherlands and the U.K |
| Keywords: | pension funds, intergenerational risk sharing, unhedgeable inflation risk, incomplete markets, welfare loss |
| JEL: | C61 E21 G11 G23 |
| Date: | 2022–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20220088&r=age |
| By: | Thomas Rapp (LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po, LIRAES - EA 4470 - Laboratoire Interdisciplinaire de Recherche Appliquée en Economie de la Santé - UPD5 - Université Paris Descartes - Paris 5); Quitterie Roquebert (UNISTRA - Université de Strasbourg); Jonathan Sicsic (LIRAES (URP_ 4470) - Laboratoire Interdisciplinaire de Recherche Appliquée en Economie de la Santé - UPCité - Université Paris Cité) |
| Abstract: | Avec le vieillissement de la population, l'accompagnement de perte d'autonomie et le bien-vieillir sont devenus des enjeux de politique publique majeurs. Une question centrale est celle de la pertinence des aides publiques : sont-elles centrées sur les besoins des personnes ? Nous montrons qu'il existe en effet une corrélation forte entre la santé perçue par nos aînés et leurs besoins de soins de longue durée (familiaux et professionnels). Nous préconisons de déployer une aide publique basée sur la notion de « value-based aging », c'est-à-dire finançant en priorité des aides centrées sur les attentes des aînés. |
| Keywords: | fragilité, perte d'autonomie, value-based aging |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03384716&r=age |
| By: | André Masson; Vincent Touzé (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | Le 5 mars 2020, l'Assemblée nationale a adopté les projets de loi ordinaire et organique, déposés par le gouvernement Philippe, instaurant un système universel de retraite (SUR). Le calendrier législatif prévoyait que ces projets de loi soient ensuite débattus au Sénat en avril 2020. Le nouveau système prévu est universel, ce qui signifie qu'il a pour vocation de remplacer les 42 régimes actuels de retraite. Le principe de la répartition est préservé : les cotisations prélevées sur les revenus des travailleurs financent les pensions des retraités. Le système prévoit un socle contributif de pension par point (chaque euro cotisé ouvre les mêmes droits) et un socle solidaire avec une garantie d'une pension minimum fixée à 85 % du SMIC net pour une carrière complète. L'année 2020 aurait dß voir naître cette nouvelle organisation avec une mise en place progressive dès 2025. Il n'en sera rien. Le 16 mars 2020, en raison de la crise économique et sanitaire consécutive de la pandémie de la COVID-19, le président Macron a annoncé que la réforme était désormais suspendue. Pour comprendre l'avenir de cette réforme en suspens, il est nécessaire de revenir sur ses « heurs » et « malheurs ». Dans un premier temps, la réforme a reçu un accueil plutôt favorable en raison d'attentes sociales fortes pour une plus grande égalité et simplicité dans le mode d'attribution de droits à la retraite. En 2017, la formule de campagne présidentielle d'Emmanuel Macron « un euro cotisé offre les mêmes droits quel que soit le statut » a contribué à la popularité du projet. La consultation citoyenne lancée en 2018, en parallèle à celle des partenaires sociaux, devait consolider le soutien des Français. Dans un second temps, l'élaboration pratique de la réforme s'est heurtée à une difficulté majeure : celle de dégager une large adhésion sur un projet aussi ambitieux. Plusieurs facteurs expliquent cette difficulté : ◆ L'instauration d'un système « super-universel » a été confrontée, simultanément, au problème posé par les problèmes de financement du système actuel en cas de croissance faible ; ◆ Le problème des transitions a été sous-estimé et s'est heurté à la question inéluctable des gagnants et perdants ; ◆ Les propositions de réforme bénéficient rarement, par nature, d'un large consensus initial dans la mesure où elles engendrent des oppositions idéologiques ; de plus, il subsiste des désaccords profonds au sein même de ses partisans. |
| Keywords: | système universel de retraite, projets de loi, crise économique, crise sanitaire, réforme |
| Date: | 2021–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03382909&r=age |
| By: | Sabatini, Serena; Martyr, Anthony; Gamble, Laura D.; Jones, Ian R.; Collins, Rachel; Matthews, Fiona E.; Knapp, Martin; Thom, Jeanette M.; Henderson, Catherine; Victor, Christina; Pentecost, Claire; Clare, Linda |
| Abstract: | Rationale: Research exploring social, cultural, and economic capital among people with dementia is scarce. Objective: We describe levels of social, cultural, and economic capital in people with dementia at baseline and levels of social and cultural capital 12 and 24 months later. We identify groups of people with dementia having different combinations of capital and explore whether the identified groups differ in personal characteristics at baseline and in quality of life (QoL), satisfaction with life (SwL), and well-being over time. Method: Baseline, 12-months, and 24-months data from 1537 people with dementia (age, mean = 76.4 years; SD = 8.5; Alzheimer's Disease = 55.4%) enrolled in the IDEAL cohort were analyzed. Social (interactions with friends, civic participation, social participation, neighborhood trust, social network), cultural (education, cultural participation) and economic (annual income) capital, QoL, SwL, well-being, and personal characteristics were assessed. Results: Compared to people their age, people with dementia reported slightly lower frequency of interactions with friends, social networks and social support, civic and cultural participation, education, and annual income. However, social engagement, cultural participation, and annual income are low among British older adults. Latent profile analysis identified four groups that, based on their levels of social, cultural, and economic capital were named socially and economically privileged (18.0% of participants); financially secure (21.0% of participants); low capital (36.9% of participants); and very low capital (24.1% of participants). Latent growth curve models showed that over time QoL, SwL, and well-being remained largely stable for all groups. Compared to the low capital group, the socially and economically privileged and financially secure groups had higher QoL and well-being whereas the group with very low capital had poorer QoL, SwL, and well-being. Conclusions: New policies and efforts from the government, philanthropic foundations, the voluntary and primary care sectors are needed to address social, cultural, and economic disadvantage among people with dementia. |
| Keywords: | assets; capital; dementia; latent profile analysis; longitudinal; quality of life; resources; satisfaction with life; well-being; ES/L001853/2; ES/L001853/2 |
| JEL: | J1 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117728&r=age |
| By: | Andrew E. Clark (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Hippolyte d'Albis (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Angela Greulich (Sciences Po - Sciences Po) |
| Abstract: | In this study, we ask whether the U-shaped relationship between life satisfactionand age is flatter for individuals who are partnered. An analysis of cross-sectionalEU-SILC data indicates that the decline in life satisfaction from the teens to thefifties is almost four times larger for non-partnered than for partnered individuals, whose life satisfaction essentially follows a slight downward trajectory with age.However, the same analysis applied to three panel datasets (BHPS, SOEP andHILDA) reveals a U-shape for both groups, albeit somewhat flatter for the partneredthan for the non-partnered individuals. We suggest that the difference between thecross-sectional and the panel results reflects compositional effects: i.e., there isa significant shift of the relatively dissatisfied out of marriage in mid-life. Thesecompositional effects tend to flatten the U-shape in age for the partnered individualsin the cross-sectional data. |
| Keywords: | Life satisfaction, Life cycle, Partnership, Marriage |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:halshs-03467204&r=age |