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on Economics of Ageing |
| By: | Chrizaan Grobbelaar (Central University of Technology, Bloemfontein); Liezel Alsemgeest (University of the Free State, Bloemfontein) |
| Abstract: | The retirement preparedness crisis presents significant challenges not only for individuals but also for broader economic stability. Millennials, the cohort born between 1981 and 2000, are currently the largest workforce in employment. They face increasing financial pressures, including student debt and volatile job markets, so the urgency to enhance retirement readiness is crucial. This study explores how gamified financial education can improve retirement preparedness and its subsequent impacts on business, finance, and economic systems.A large percentage of millennials are inadequately prepared for retirement, and many lack the necessary financial literacy to make informed decisions. This shortfall in retirement preparedness for a large part of the workforce can exacerbate wealth inequality and place additional burdens on government welfare systems, as inadequate retirement savings could lead to increased reliance on government support, potentially costing taxpayers billions annually.The process of incorporating game concepts into non-gaming contexts, such as retirement planning, has become a popular strategy for educating people about money. Gamified applications have demonstrated the potential to improve user engagement and comprehension by turning complex financial topics into interactive experiences. One of the most important aspects of retirement preparedness is financial literacy. People who are more financially literate are more likely to plan for retirement successfully. In order to promote a culture of proactive financial planning, financial literacy must be incorporated into both workplace training programs and educational curricula.The randomised controlled experiment was conducted in the form of a pre-test, intervention, and a post-test. The pre-test determined the financial literacy levels and retirement preparedness of the millennial participants. A gamified retirement planning education application was developed and tested for its effectiveness in increasing retirement preparedness. A randomised control trial (n=90) with three different groups (control group, traditional educational group and the gamification group) revealed that gamification increased awareness of the need to save for retirement for both the traditional educational group and the gamification group. The gamification group was the only group that demonstrated an increase in their mean score for their interest in retirement planning. The data underscores gamification?s unique capacity to address behavioural barriers to retirement planning. Features like simulated ageing avatars and real-time savings visualisations increased the engagement of participants. The implications of enhanced retirement preparedness extend beyond individual benefits; they encompass broader economic impacts that can drive sustainable growth and stability. Policymakers must prioritise initiatives that promote financial literacy and gamified education strategies within workplaces to ensure that future generations are equipped for financial independence in retirement. |
| Keywords: | Retirement preparedness, Gamification, Financial literacy, Millennial |
| JEL: | G23 D14 A20 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iacpro:15216657 |
| By: | Drew M. Thomas |
| Abstract: | What grounds the rule of thumb that a(n American) retiree can safely withdraw 4% of their initial retirement wealth in their first year of retirement, then increase that rate of consumption with inflation? I investigate that question with a discrete-time model of returns to a retirement portfolio consumed at a rate that grows by $s$ per period. The model hinges on the parameter $\gamma$, an $s$-adjusted rate of return to wealth, derived from the first 2-4 moments of the portfolio's probability distribution of returns; for a retirement lasting $t$ periods the model recommends a rate of consumption of $\gamma / (1 - (1 - \gamma)^t)$. Estimation of $\gamma$ (and hence of the implied rate of spending down in retirement) reveals that the 4% rule emerges from adjusting high expected rates of return down for: consumption growth, the variance in (and kurtosis of) returns to wealth, the longevity risk of a retiree potentially underestimating $t$, and the inclusion of bonds in retirement portfolios without leverage. The model supports leverage of retirement portfolios dominated by the S&P 500, with leverage ratios $> 1.6$ having been historically optimal under the model's approximations. Historical simulations of 30-year retirements suggest that the model proposes withdrawal rates having roughly even odds of success, that leverage greatly improves those odds for stocks-heavy portfolios, and that investing on margin could have allowed safe withdrawal rates $> 6$% per year. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2508.10273 |
| By: | Nuttaporn Rochanahastin; Shinawat Horayangkura |
| Abstract: | This study examines saving and dissaving behaviors across different age groups and generational cohorts in Thailand, using nearly three decades of repeated cross-sectional data from the Thai Household Socio-Economic Survey (HSES). The findings reveal a clear hump-shaped life-cycle pattern in saving behavior, with savings peaking between the ages of 56 and 65, slightly beyond traditional working life. Importantly, wealth accumulation remains positive even into later life stages, suggesting the influence of precautionary motives, cultural bequest norms, and limited annuitization options. Generational comparisons show that Baby Boomers and Generation X consistently save more than Generation Y, reflecting differences in economic experiences and structural opportunities across cohorts. The study underscores the impact of economic experiences and life stages on saving behavior. These findings highlight the critical interplay of temporal, demographic, and cohort effects, offering valuable insights for policymakers seeking to promote financial resilience and security in an aging society. |
| Keywords: | Household behavior; Household saving; Lifecycle; Age; Cohorts |
| JEL: | D10 D14 E21 J11 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:pui:dpaper:236 |
| By: | Katarzyna, Kowalska; Hannah, Müller; Marga, Nainggolan; Đặng, Kim |
| Abstract: | This study investigates the interplay between demographic aging, macroeconomic transitions, and labor market resilience using a panel of countries over two decades. By integrating life expectancy, labor market outcomes, and key economic indicators, the analysis reveals that rising longevity positively influences labor force participation and economic growth, particularly when paired with strong educational systems and flexible institutions. However, without supportive labor regulations and health investment, gains in life expectancy may exacerbate informal employment and economic dependency. The findings highlight the critical role of policy in transforming demographic shifts into economic advantages. Econometric results underscore the need for coordinated strategies that align health, education, and employment systems to ensure resilience and inclusivity in the face of demographic transitions. |
| Keywords: | Demographic aging, macroeconomic transitions, employment dynamics |
| JEL: | E6 |
| Date: | 2024–05–04 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125356 |
| By: | Alejandro Herrera Jimenez (Investigador senior asociado de INESAD); Beatriz Muriel (Directora Ejecutiva e Investigadora Senior de INESAD) |
| Abstract: | Este estudio plantea la Educación Financiera como un factor clave para promover la planificación de la jubilación, analizando el caso de productores de quinua certificada del Altiplano Sur de Bolivia. Se llevó a cabo entrevistas y una encuesta diagnóstica para indagar sobre sus prácticas de ahorro previsional, sus niveles de conocimientos financieros y las condiciones de vida en la vejez en sus comunidades. Se revela una baja incidencia del ahorro a largo plazo, principalmente debido a la falta de educación financiera y sobre pensiones. Ante esta situación, el estudio diseñó e implementó una intervención piloto para fortalecer estos conocimientos. Los efectos fueron notables: los participantes mostraron una mejor comprensión del sistema de pensiones y una mayor disposición a planificar su jubilación. El impacto fue particularmente notorio en las mujeres, que mejoraron sus conocimientos y su capacidad para elaborar planes de ahorro, reduciendo así la brecha de género en educación financiera. |
| Keywords: | Educación e Inclusión Financiera, Ahorro Previsional, Producción de Quinua. |
| JEL: | D14 G23 Q12 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:adv:wpaper:202505 |
| By: | Moawad, Jad (Department of Social Policy and Intervention, University of Oxford) |
| Abstract: | The increasing complexity of financial markets and the shift towards individual responsibility for retirement savings highlight the importance of sound financial decision-making. However, significant gaps persist, with women and individuals from lower socioeconomic backgrounds often exhibiting lower financial literacy and market participation. While the effectiveness of broad financial education is debated, the impact of targeted, concise information on specific investment behaviors remains unclear. We conducted a pre-registered randomized controlled trial with a representative sample of U.S. adults (N=2, 568) to investigate whether providing specific information about Exchange-Traded Funds (ETFs) - comparing their risks and returns to those of alternatives like gold, individual stock, savings, and cryptocurrency - could influence investment choices and reduce demographic gaps. Participants made allocation decisions for a real $100 lottery prize invested for one year. We find that the informational intervention significantly increased allocation to ETF (+17.8 percentage points) on average, shifting funds from savings, gold, and individual stock. Crucially, the intervention had larger effects among women, individuals without a bachelor's degree, and those from lower social origins, substantially eliminating the gender gap and narrowing gaps based on education and social origin. These results demonstrate that targeted, product-specific financial information can be a powerful tool to reduce investment inequalities and promote financial inclusion. |
| Keywords: | Financial Literacy, Investment Behavior, Randomized Controlled Trial (RCT), Financial Inclusion, Portfolio allocation |
| JEL: | G11 G53 C93 D14 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:amz:wpaper:2025-16 |
| By: | Balakina, Olga; Christiansen, Charlotte; Kallestrup-Lamb, Malene |
| Abstract: | This paper examines how offering sustainable investment options influences sustainable consumption behavior. We combine a natural experiment in which individuals receive an option to switch to a pension plan with a strong sustainability profile with detailed household register data. This sustainable option improves sustainable consumption, as reflected in electric vehicle adoption and reduced vehicle emissions. The effect is primarily driven by individuals who do not choose the sustainable plan. We show that making sustainable investment available can create positive spillover effects on other sustainable behaviors, highlighting the potential of financial tools to support broader societal change. |
| Keywords: | Household finance, sustainable investments, sustainable consumption, pension investments, sustainable pension plans, electric vehicles |
| JEL: | G11 G51 D14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:324640 |
| By: | Raffaella Intinghero; Pietro Lazzaretto; Paolo Manasse |
| Abstract: | Obituaries are traditionally seen as expressions of grief and remembrance. We argue that they also have an underappreciated economic role: they are vehicles for strategic social and economic signaling. In this paper, we develop a simple theoretical framework in which paid obituaries serve as a form of self-promotion for the authors, especially when the deceased is a prominent public figure. We then test this hypothesis using data from Italy, exploiting the variation in mortality caused by the COVID-19 pandemic as a natural experiment. We show that higher mortality rates are associated with increases in per-capita obituaries, driven not by informational needs but by strategic advertising motives. Our results suggest that obituaries function as a marketplace for visibility and status, where social and economic incentives intersect. |
| JEL: | A10 A13 D71 D85 D91 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:bol:bodewp:wp1209 |