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on Economics of Ageing |
| By: | Kim, Dohun; Lee, Seunghee |
| Abstract: | South Korea's Basic Pension, which currently covers 70% of its older adults, does not reflect the declining elderly poverty rate as their income and asset levels rise. To ease fiscal burdens while effectively addressing elderly poverty, its eligibility threshold should shift from a fixed share of older adults to one tied to the national median income, better targeting vulnerable older adults for support. In the long term, integrating the Basic Pension with the National Basic Livelihood Security System to establish an old-age minimum income guarantee warrants consideration. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kdifoc:319702 |
| By: | Henz, Ursula; Wagner, Michael |
| Abstract: | The growing number of people aged 80 or older living in the community has raised concerns about meeting their care needs and about socio-economic inequalities in their care use. The study examines socio-economic status (SES) patterns in informal and formal care use, as well as unmet care needs, of people aged 80 or older living in the community in Germany and England. We propose that SES patterns in care use change with the intensity of care needs. The analyses use data from the Survey of Quality of Life and Well-Being of the Very Old in North Rhine-Westphalia and the English Longitudinal Study of Ageing. Despite the differences in the long-term care systems (LTCSs) and cultural norms around filial obligations, we find a consistent pattern of association between socio-economic status (SES) and care use for older people with only few care needs in both countries. In this group, people with a higher SES have the highest likelihood of experiencing unmet care needs. For older people with many care needs, we find country-specific SES patterns that we link to cultural differences and the design of the LTCSs. In Germany, SES is negatively associated with using informal care and positively with using formal care. In England, care use shows little SES variation for older people with many care needs. The findings underscore the importance of considering the intensity of care needs when assessing inequalities in care access. |
| Keywords: | informal care; formal care; unmet care need; inequality; care regimes; ageing |
| JEL: | J1 |
| Date: | 2025–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128333 |
| By: | Yuting Qian; Xi Chen |
| Abstract: | This paper analyzes the impact of paid family leave (PFL) policies on informal and formal care for middle-aged and older adults with disabilities in the U.S., and how the heterogeneous benefits accrue to different families. We use data from the 1998-2018 Health and Retirement Study (HRS) and leverage the PFL programs implemented in California (2004), New Jersey (2009), and New York (2018) in a difference-in-differences (DiD) design. We deploy both the conventional two-way fixed effects (TWFE) model and an adapted DiD estimator developed by Sun and Abraham for staggered rollout designs. We find that PFL access is associated with a 5.7 percentage point increase in the likelihood that individuals with disabilities receive informal care from their children. We also show that PFL access significantly increases the use of home care services and nursing home care. These effects are primarily concentrated among individuals with disabilities who have both a spouse and children, and are almost non-existent among those who have only children and no spouse. Our findings demonstrate that PFL policies improve care access and help address unmet care needs for middle-aged and older adults with disabilities, but their impact remains limited for certain vulnerable subgroups, particularly those with only children. |
| JEL: | I10 I38 J14 J18 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33918 |
| By: | Ulrike Famira-Mühlberger (WIFO); Klaus Nowotny |
| Abstract: | We use administrative microdata and statistical learning methods to analyse how personal characteristics and the consumption of healthcare services help predict the first-time receipt of "long-term care allowance" (LTCA), a needs-tested cash-for-care benefit in Austria. Our findings suggest that short-term information from the health-care sector, particularly in the quarter prior to LTCA enrolment, provides substantial explanatory power. Apart from old age, the most influential predictors include the frequency of doctor visits and hospital stays as well as diagnoses such as dementia, cerebral infarction, and hypertension. Our findings emphasise the importance of data-driven approaches in anticipating the uptake of long-term care benefits and informing policy, especially against the background of the demographic transition. |
| Date: | 2025–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:wfo:wpaper:y:2025:i:707 |
| By: | Longden, Thomas (University of Western Sydney); Naghsh Nejad, Maryam (University of Technology, Sydney) |
| Abstract: | This paper examines how individuals respond financially to severe health shocks by analyzing early withdrawals from retirement savings following the initiation of cancer treatment (chemotherapy). Using comprehensive administrative data from Australia that link health, tax, and demographic records, we study behavior in a setting with universal health coverage and a mandatory retirement savings scheme that permits early access under hardship provisions. We find that early withdrawals increase significantly in the year of and the year after treatment, particularly among individuals who lose income or receive a terminal diagnosis. To interpret these patterns, we extend a dynamic Grossman-style model of health capital to account for survival probabilities and institutional features of the retirement system. Our findings show that health shocks prompt individuals to draw down retirement savings as a form of self-insurance, revealing how health risks interact with retirement policy. These results inform ongoing debates about the flexibility and adequacy of retirement savings systems. |
| Keywords: | early retirement withdrawals, health shocks, income loss, administrative data, life-cycle savings |
| JEL: | H55 I10 D14 D15 J32 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17964 |
| By: | Luis Vieira |
| Abstract: | This study investigates the impact of acute health shocks on early labour market exits among individuals aged 50 and over in Europe. Utilising data from Waves 1-8 of the Survey of Health, Ageing, and Retirement in Europe (SHARE), encompassing over 140, 000 individuals, I employ survival analysis techniques, including Kaplan-Meier estimators and Cox proportional hazards models. The analysis explores how sudden, severe health events, alongside self-perceived health, chronic conditions, and socio-demographic factors, influence the probability of exiting the workforce before official retirement age. Results indicate that acute health shocks significantly increase the hazard of early labour market exit, with more pronounced effects observed for males. Poorer self-perceived health and lower educational attainment are also strong predictors of early exit. Gender differences are notable: while poorer health consistently raises exit risk for both genders, income acts as a protective factor for females, and living with a partner reduces exit risk for males but increases it for females. These findings highlight the critical role of health in labour market participation and suggest the need for targeted policies to support older workers, particularly those experiencing adverse health events. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.06545 |
| By: | Kesternich, Iris; Romahn, André; Van Biesebroeck, Johannes; van Damme, Marjolein |
| Abstract: | The German universal long-term care (LTC) insurance program offers beneficiaries the choice between in-kind services and a cash benefit, which can be used for anything, including informal care. The optimal level of the cash benefit de- pends on substitution between formal and informal care options, the cost of public funds, and distributional considerations. To evaluate various policy options, we estimate a randomcoefficients demand model for the period 1999-2015 using data on the universe of LTC patients supplemented with micro moments from the German Mikrozensus. Results show strong heterogeneity in patient preferences for the three different LTC options: informal, ambulatory and stationary care. Acounterfactual analysis predicts that abolishing the cash subsidy leads to a decline in patient sur- plus that far outweighs the savings in public expenditure. It suggests that many countries could benefit from the introduction of a cash subsidy option for LTC. |
| Keywords: | Aging, long-term care, insurance, informal care |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:hcherp:319650 |
| By: | Vanya Horneff; Raimond Maurer; Olivia S. Mitchell |
| Abstract: | Some US defined contribution plans offer retirees access to an annuity or lifetime income stream as payout options from their 401(k) accounts. Nevertheless, for behavioral reasons, some retirees may hesitate to elect lifetime income streams as a drawdown vehicle. To counter this, plan sponsors could automatically allocate a portion of retirees’ 401(k) assets to annuities, now that regulatory barriers to doing so have eased. Using a lifecycle economic model, we evaluate the pros and cons of defaulting retirees’ 401(k) assets into payout annuities. We show that defaulting 20% of a retiree’s assets over a threshold into an immediate annuity enhances retirement security for most plan participants. An annuity deferred to the age of 80 is particularly beneficial to college graduates, in terms of enhancing their welfare |
| JEL: | D14 D91 G11 G22 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33915 |
| By: | Hu, Bo; Hancock, Ruth; Wittenberg, Raphael; King, Derek; Morciano, Marcello |
| Abstract: | Reforms to the means tests in England for state-financed long-term care were planned for implementation in 2025. They included a lifetime limit (cap) on how much an individual must contribute to their care, with the state meeting subsequent care costs. We present projections of the costs and distributional impacts of these reforms for older people, using two linked simulation models which draw on a wide range of data. We project that by 2038 public spending on long-term care for older people in England would be about 14% higher than without the reforms. While the main direct beneficiaries of the lifetime cap would have been the better off who currently receive no state help with their care costs, the reforms also treated capital assets more generously than the current system, helping people with more modest incomes and wealth. When analysing the impacts of the reforms it is therefore important to consider the whole reform package. Our results depend on a range of assumptions, and the impacts of the reforms would be sensitive to the levels of the cap and other reformed parameters of the means test on implementation. |
| Keywords: | long-term care; older people; charging reform; projected expenditure; distribution analyses |
| JEL: | H51 H53 H75 I18 |
| Date: | 2025–05–14 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127952 |
| By: | Lazarus, Suleman; Tickner, Peter; McGuire, Michael R. |
| Abstract: | We discuss cybercrimes against senior citizens from three standpoints: (a) online fraudsters often target senior citizens because of their age, which results in the propagation of ageism. Thus, we explicitly define ageism in the context of cybercrime, characterising it as the intentional targeting or prioritisation of senior citizens as potential victims of online fraud. (b) Senior citizens are vulnerable to online fraud schemes for physiological (e.g., cognitive decline), psychological (e.g., elevated fear of cybercrime), familial (e.g., insider fraud), and sociocultural (e.g., isolation) reasons. (c) Cybercrimes against older adults predominantly fall under the socioeconomic category driven by a common financial motive. We argue that ageism serves as a weapon used by online offenders to target older adults, whilst the concept of the ideal victim acts as society’s shield in response to these reprehensible actions. This framework invites closer attention to how age-based targeting in cyberspace reproduces broader social, economic, and moral asymmetries. Future empirical studies are warranted to substantiate these claims beyond the theoretical realm. |
| Keywords: | ageism and ageing; elder abuse; senior citizens; vulnerabilities and risk factors; ideal victim; online fraud |
| JEL: | J1 |
| Date: | 2025–06–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123873 |
| By: | Charles Yuji Horioka |
| Abstract: | In this paper, we discuss bequests and other intergenerational transfers and what impact they have on the consumption, saving, and labor supply behavior of households. We show that bequests and other intergenerational transfers are prevalent in most countries, that they are sometimes motivated by altruism and sometimes by selfishness, that they affect the consumption and saving behavior of households to some extent, especially that of elderly households, that they affect the labor supply behavior of households, especially that of bequest recipients, and that they have important policy implications. |
| JEL: | D11 D12 D14 D15 D31 D64 E21 H31 J22 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33927 |
| By: | Duy-Minh Dang; Chang Chen |
| Abstract: | We investigate multi-period mean-risk portfolio optimization for long-horizon Defined Contribution plans, focusing on buffered Probability of Exceedance (bPoE), a more intuitive, dollar-based alternative to Conditional Value-at-Risk (CVaR). We formulate both pre-commitment and time-consistent Mean-bPoE and Mean-CVaR portfolio optimization problems under realistic investment constraints (e.g., no leverage, no short selling) and jump-diffusion dynamics. These formulations are naturally framed as bilevel optimization problems, with an outer search over the shortfall threshold and an inner optimization over rebalancing decisions. We establish an equivalence between the pre-commitment formulations through a one-to-one correspondence of their scalarization optimal sets, while showing that no such equivalence holds in the time-consistent setting. We develop provably convergent numerical schemes for the value functions associated with both pre-commitment and time-consistent formulations of these mean-risk control problems. Using nearly a century of market data, we find that time-consistent Mean-bPoE strategies closely resemble their pre-commitment counterparts. In particular, they maintain alignment with investors' preferences for a minimum acceptable terminal wealth level-unlike time-consistent Mean-CVaR, which often leads to counterintuitive control behavior. We further show that bPoE, as a strictly tail-oriented measure, prioritizes guarding against catastrophic shortfalls while allowing meaningful upside exposure, making it especially appealing for long-horizon wealth security. These findings highlight bPoE's practical advantages for long-horizon retirement planning. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.22121 |
| By: | Noelia Bernal; Sebastian Galiani; Oswaldo Molina |
| Abstract: | We conducted a large field experiment in Peru on informal workers and studied whether offering them a matching contribution raise participation and contributions in their Individual Retirement Accounts. We had three groups: a control group receiving no match, and two treatments groups receiving 50 and 100 percent match, respectively. Additionally, due to the time span, we can also analyze the difference responses between pre and during Covid-19. The results were as follows. First, the match incentive increases participation. Workers in the 50 and 100 percent match groups show participation rates of 5.2 and 6.5 p.p. higher than workers in the control group, respectively. The participation effect is also present pre Covid-19 and disappears during it. Second, the 100 percent match incentive was the only effective in increasing savings among all individuals (1.4 p.p.), pre (2.3 p.p.) and during Covid-19 (0.97 p.p.). This effect still presents in LATE specification with higher p.p. Third, 100% match was again the only effective to make contribute more than once, in the full sample (1.2 p.p.), and pre Covid-19 (2.7 p.p.), including LATE specification (full sample – 5.6 p.p.; pre Covid-19 – 8.2p.p.). Fourth the 50 percent match is not effective in raising contribution in any specification. |
| JEL: | J49 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33925 |
| By: | Nofal, Bastián Castro; Flores, Ignacio; Cubillos, Pablo Gutiérrez |
| Abstract: | This paper examines wealth inequality dynamics in Chile from 2007 to 2021, focusing on two key macroeconomic events: the sharp rise in housing prices after the introduction of a real estate value-added tax in 2016 and the substantial liquidation of pension assets through early withdrawals during the pandemic. We introduce a methodological innovation that aims to improve the measurement of wealth inequality by integrating administrative pension fund records into household wealth surveys using machine learning techniques. Our results reveal extreme levels of wealth concentration, with the top 10% holding approximately two-thirds of national private wealth. However, inequality slightly declined over the period, particularly after 2016, as the outcome of two opposing forces: housing appreciation, which benefited middle-class households, and pension fund withdrawals, which disproportionately reduced wealth at the lower end of the distribution. (Stone Center on Socio-Economic Inequality Working Paper) |
| Date: | 2025–06–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:b8zve_v1 |