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on Economics of Ageing |
| By: | Laurence O'Brien (Institute for Fiscal Studies) |
| Date: | 2024–10–15 |
| URL: | https://d.repec.org/n?u=RePEc:ifs:ifsewp:24/45 |
| By: | Barr, Nicholas |
| Abstract: | A response to pressures on pension finance caused by population ageing and economic turbulence has been a substantial move from traditional defined-benefit plans in which, at least in principle, all risk falls on the contributions side, to defined-contribution plans in which risk during accumulation all falls on the benefits side. This paper argues that both designs are ‘corner solutions’ and hence generally suboptimal, and goes on to set out a range of designs that offer different ways of sharing risk among workers, employers, future pensioners and current pensioners. |
| Keywords: | defined contribution; defined benefit; risk sharing; population ageing |
| JEL: | J1 |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125669 |
| By: | Kotschy, Rainer (Harvard School of Public Health); Bloom, David E. (Harvard School of Public Health); Scott, Andrew (London Business School) |
| Abstract: | Analysis of population aging is typically framed in terms of chronological age. However, chronological age itself is not necessarily deeply informative about the aging process. This paper reviews literature and conducts empirical analyses aimed at investigating whether chronological age is a reliable proxy for physiological functioning when used in models of economic behavior and outcomes. We show that chronological age is an unreliable proxy for physiological functioning due to appreciable differences in how aging unfolds across people, health domains, and over time. We further demonstrate that chronological age either fails to predict economic variables when used in lieu of physiological functioning, or that it predicts additional effects on economic behavior and outcomes that are largely unrelated to physiological aging. Continued reliance on chronological age as a proxy for physiological functioning might impede the ability of societies to fully harness the benefits of increasing longevity. |
| Keywords: | population aging, chronological aging, physiological aging, physiological functioning, longevity |
| JEL: | I10 I30 J10 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17427 |
| By: | Laure Doctrinal |
| Abstract: | Concerns about the social sustainability of pension systems are growing. The increasing privatization of pension provision in many OECD countries is expected to have harmful consequences for workers with non-standard working careers, among whom women are overrepresented. Despite much new research, little is known about changes in the incomes of newly retired persons. Using microdata from the Luxembourg Income Study, this study analyzes how the economic independence of newly retired women and men has changed over the years 1986–2018 in fifteen OECD countries and assesses some of its determinants. The results show that economic independence among newly retired women has increased since the 1980s in almost all countries, but decreased among men in half of the countries considered here. Regression analyses show that pension privatization is not associated with worsened economic independence among newly retired women, nor among newly retired men. Minimum public pensions tend to increase the economic independence of both newly retired women and men. Economic independence is also more common among newly retired cohorts of women with gainful work histories and parental leave duration in their prime working years. |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:lis:liswps:861 |
| By: | Alicia H. Munnell; Yimeng Yin; Jean-Pierre Aubry |
| Abstract: | IBM has reopened its defined benefit plan to use the plan’s surplus – rather than corporate cash – to fund retirement contributions. This shift has been fueled by a more favorable regulatory environment and the improved funded status of defined benefit plans. While using “trapped surpluses†helps the firm, workers may well come out behind unless the gains are shared. Interestingly, the analysis finds that only a handful of other large companies are likely candidates to follow IBM’s lead. Thus, the move should be viewed as a financial maneuver, not a meaningful change in the provision of retirement income. |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:crr:issbrf:ib2024-04 |
| By: | Colleen Heflin (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Chinedum O. Ojinnaka (Arizona State University); Irma A. Arteaga (University of Missouri-Columbia); Leslie Hodges; Gabriella Alphonso (Maxwell School, Syracuse University) |
| Abstract: | For older adults with hypertension, medication adherence is critical to decreasing hospitalization, poor health outcomes, and healthcare costs. The Supplemental Nutrition Assistance Program (SNAP)—the largest food and nutrition assistance program in the United States—could protect against medication non-adherence. This brief summarizes the findings from a recent study, which linked Missouri Medicaid administrative claims data to SNAP data from 2006 to 2014. The findings suggest that longer and consistent receipt of SNAP benefits was associated with higher levels of antihypertensive medication adherence among Medicaid-insured individuals aged 60 years and older. |
| Keywords: | SNAP, Older Adults, Medication Adherence |
| Date: | 2023–04 |
| URL: | https://d.repec.org/n?u=RePEc:max:cprpbr:2 |
| By: | Farrigan, Tracey; Genetin, Brandon; Sanders, Austin; Pender, John; Thomas, Kelsey L.; Winkler, Richelle L.; Cromartie, John |
| Abstract: | Rural America at a Glance is an annual report that highlights recent social and economic conditions in rural areas of the United States. This edition focuses on the age structure of the rural population and the implications of age-related demographic change through the lens of migration, labor market participation, poverty, childcare and eldercare, and broadband. The aging of the population affects rural areas, where residents tend to be older on average than their urban counterparts. Whether due to retirees migrating to rural destinations or the aging of the population in place, recent growth in older age cohorts has implications for rural communities, such as the local labor supply and the demands for goods and services. |
| Keywords: | Community/Rural/Urban Development, Food Security and Poverty, Health Economics and Policy, Labor and Human Capital, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2023–11 |
| URL: | https://d.repec.org/n?u=RePEc:ags:uersib:348093 |
| By: | Anqi Chen |
| Abstract: | Our 2023 Small Business Retirement Survey looks at why some small firms offer a retirement savings plan and others do not. Factors that affect whether small firms offer a plan include firm size, wages, and industry, as well as beliefs on whether it will help attract workers. The main barriers to offering a plan are concerns about the stability/size of the firm and the perceived costs of a plan. Concerns about costs are driven by misperceptions; many firms are unaware of lower-cost options for employers and tax credits. The results also suggest that state auto-IRA programs are more likely to encourage than discourage firms from offering their own plan. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:crr:issbrf:ib2024-07 |
| By: | Yimeng Yin; Anqi Chen; Alicia H. Munnell |
| Abstract: | From 2019 to 2022, the National Retirement Risk Index improved substantially, dropping from 47 percent to 39 percent. Weathering the pandemic turmoil, households were buoyed by government stimulus, strong employment, and rising asset markets. The single biggest factor driving the improvement was soaring home values. Though these results are encouraging, most people do not tap their home equity in retirement and prices may not stay at such high levels. Importantly, even with what may be a temporary improvement, the NRRI shows that 2 in 5 of today’s working households could fall short. |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:crr:issbrf:ib2024-05 |
| By: | Geoffrey T. Sanzenbacher |
| Abstract: | Many older workers are inclined to work longer, but will employers hire and retain them – today and in the future? A series of CRR studies on this topic provide a case for tempered optimism. First, hard data suggest that older workers are at least as productive as younger ones, though they do cost more. Second, survey data show that employers’ views are largely in line with these hard data, and job postings confirm a willingness to hire. Finally, while the jobs that older workers do today may be less prevalent in the future, jobs that they have the skills for should be available. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:crr:issbrf:ib2024-06 |
| By: | Wang, Yansong David; Xu, Tao Louie; Yuan, Cheng |
| Abstract: | This research employs the Alkire-Foster approach to measure multidimensional poverty between 2012 and 2020 in China, followed by examining the role of the three-pillar pension system in mitigating household multidimensional poverty. With the China Family Panel Studies data, our measurement uncovers the sustainable effects and mechanisms of household participation in the multi-pillar pension system on poverty mitigation. The results indicate that more participation in the pension system mitigates the probability of being trapped in multidimensional poverty. The findings reveal the significance of state social insurance, enterprise annuity, and individual commercial insurance. The mitigation effect of market-oriented pillars is achieved through more investment in and consumption for livelihood assets. Based upon the sustainable livelihoods framework, livelihood assets ameliorate household capabilities in human, natural, financial, and psychological capital against risks, shocks, and uncertainties. Our research contributes to the knowledge of how household participation in pension pillars sustainably mitigates multidimensional poverty through micro-level mechanisms and to the policy praxis of why a facilitating state is called for poverty mitigation from the perspective of new structural economics. |
| Date: | 2024–11–05 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:xeaqt |
| By: | Perelman, Sergio (Université de Liège); Pestieau, Pierre (Université catholique de Louvain, LIDAM/CORE, Belgium) |
| Abstract: | This paper aims to explore the diverse strategies employed by various countries in managing end-oflife care. It examines the interplay between the State, the marketplace, and the family in navigating this critical phase of the human lifecycle. The core argument presented advocates for a paradigm shift away from intensive medical interventions towards an increased emphasis on palliative care. This proposed transition holds significant potential benefits, including the reduction of social insurance costs, minimizing out-of-pocket expenditures for families, and alleviating unnecessary suffering for patients. |
| Keywords: | End-of-life care ; palliative care ; aggressive medical intervention ; healthcare costs |
| Date: | 2024–03–10 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2024005 |