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on Economics of Ageing |
| By: | Alex Arifianto |
| Keywords: | aging, public policy, social security, Indonesia |
| URL: | https://d.repec.org/n?u=RePEc:agg:wpaper:706 |
| By: | David Frayman |
| Abstract: | Governments of developed countries are facing growing pressures from the fiscal demands of an ageing population. To cope with this, they have tried to get individuals to work longer, primarily by raising the ages at which state pensions can be claimed. In the UK, where government spending on pensioner benefits represents over 5% of GDP2, state pension age has already been increased to 66 (from 60 for women and 65 for men). It is currently scheduled to increase to 67 between 2026 and 2028 and to 68 between 2044 and 2046. The Government is considering bringing the increase to 68 forward to the period 2037-2039. This chapter evaluates these proposed changes from a wellbeing perspective. |
| Keywords: | pensions, government spending |
| Date: | 2024–09–04 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepops:66 |
| By: | Benison Thomas (Motu Economic and Public Policy Research); Trinh Le (Motu Economic and Public Policy Research) |
| Abstract: | Home equity release refers to financial products that allow people to access the equity that is tied up in their own homes. Home equity is a large part of household wealth in New Zealand, making it an important asset that could potentially be used to fund retirement. However, the take-up of equity release products such as reverse mortgages is very low. This research examines whether home equity release schemes currently available in the New Zealand market provide value for money and how they might provide a suitable form of retirement income for some people. The available data confirm the existence of many households with low retirement income and high housing wealth, highlighting those who stand to potentially gain from home equity release. Assessments of the features and costs of current home release schemes, alongside worked examples using realistic values, highlight the scenarios when home equity release may (or may not) be beneficial. Depending on current circumstances and future financial needs, home equity release may be a suitable form of retirement income for some retirees but not for others. |
| Keywords: | Home equity release; reverse mortgage; wealth decumulation; retirement |
| JEL: | J14 J26 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:mtu:wpaper:24_03 |
| By: | Becker, Sebastian (Federal Ministry of Labor and Social Affairs (BMAS), Germany); Gehlen, Annica (DIW Berlin); Geyer, Johannes (DIW Berlin); Haan, Peter (DIW Berlin) |
| Abstract: | We provide novel evidence about the incentive and welfare effects of an increase in the generosity of disability benefits. Importantly, a unique policy variation in Germany allows us to isolate the income effect of a change in benefit generosity. We leverage this quasi-experimental policy variation using an RD design to estimate the effect of increasing disability benefits on employment, earnings, labor market transitions, and mortality outcomes using administrative data on the universe of new disability benefit recipients. Contrary to previous literature, our analysis reveals no significant impact on the employment and earnings of DI recipients due to the increased benefits. However, we find a sizable effect of the probability of returning to the labor market. We find no effects on recipient mortality six years after benefit award, but estimates imply a notable reduction in poverty risk, highlighting meaningful welfare implications of increased generosity. |
| Keywords: | disability insurance, pension reform, wealth effect, labor supply, mortality, RDD |
| JEL: | H55 I12 J22 J26 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17298 |
| By: | Francisco Pinto-Avalos; Michael Bowe; Stuart Hyde |
| Abstract: | Pension fund asset allocation in many countries has become increasingly influenced by financial advisory firms, whose recommendations often elicit a large, coordinated portfolio reallocation of pension fund holdings across asset classes. Using a proprietary database, we analyse if porfolio asset reallocations in the Chilean pension fund industry act as a mechanism for exerting and enhanced volatility in the nominal exchange rate surrounding pension fund transactions initiated by pension pressures in the Chilean peso FOREX market. We document significant price pressure and enhanced volatility investors following financial advisory firm recommendations. We provide evidence that certain institutions participating in the FOREX market may seek to exploit the anticipated portfolio adjustments following such recommendations by front-running pension fund trades. The potential for financial asset market volatility and market instability this activity creates has regulatory and policy implications. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:chb:bcchwp:1020 |
| By: | Timothy Riffe (Max Planck Institute for Demographic Research, Rostock, Germany); Rustam Tursun-Zade (Max Planck Institute for Demographic Research, Rostock, Germany); Sergi Trias Llimós (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Keywords: | Spain, mathematical demography, mortality, population composition |
| JEL: | J1 Z0 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:dem:wpaper:wp-2024-029 |
| By: | Ana Costa-Ramón; Ursina Schaede; Michaela Slotwinski; Anne Ardila Brenøe |
| Abstract: | The “child penalty” significantly reduces women’s lifetime earnings and pension savings, but it remains unclear whether these gaps are the deliberate result of forward-looking decisions. This paper provides novel evidence on the role of information constraints in mothers’ labor supply decisions. We first document descriptively that mothers are largely inattentive to the long-term financial consequences of reduced hours. In a large-scale field experiment that combines rich survey and administrative data, we then provide mothers with objective, individualized information about the long-run costs of reduced labor supply. The treatment increases demand for financial information and future labor supply plans, in particular among women who underestimate the long-term costs. Leveraging linked employer administrative data one year post-intervention, we observe that mothers who underestimate the long-term costs increase their labor supply by 6 percent over the mean. |
| JEL: | J16 J22 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:zur:econwp:452 |
| By: | Schilirò, Daniele |
| Abstract: | This paper focuses on the challenges posed by high public debt and demographic decline in Italy. The interplay between these two factors threatens debt sustainability and hinders economic growth. A large debt stock constrains economic policy choices and limits national sovereignty. Meanwhile, population decline affects public spending and tends to exacerbate public debt, further complicating its sustainability. Possible policy options to counterbalance this issue include immigration, increasing labor force participation, pension reforms, fiscal consolidation, and investment in education targeted at the young population. |
| Keywords: | public debt; demography; declining population; sustainable debt; growth; immigration |
| JEL: | F3 H60 H63 J0 J2 J6 O40 O5 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121958 |
| By: | Freak-Poli, Rosanne (Monash University); Jenkins, Stephen P. (London School of Economics); Shields, Michael A. (Monash University); Trinh, Trong-Anh (Monash University) |
| Abstract: | Despite a substantial literature on the links between social relationships and mortality, the size of the relative risks from loneliness, social isolation, and living alone, remain controversial. Further research is therefore important given demographic changes meaning that more people are living alone, for longer, and with chronic health conditions. Using 19 waves of high-quality Australian longitudinal data we provide new evidence using multiple measures of social relationships, model specifications, and adjustments for confounding. We focus on chronic measures of (poor) social relationships and provide separate estimates by gender. We find that both functional and structural aspects of social relationships are independently strongly associated with all-cause mortality. We estimate a hazard ratio for loneliness of 1.41, which is greater for males (1.55) than females (1.24). These hazard ratios are larger than found for social isolation (1.19). We also find a strong relationship between being an active member of a club and reduced mortality risk, but no evidence that living alone is an independent risk factor. We provide useful comparisons with the mortality risks associated with smoking and household income. Overall, our findings suggest that interventions should focus on reducing both loneliness and social isolation, as well as encouraging active social participation. |
| Keywords: | mortality, social relationships, loneliness, social support, social isolation, club membership, living alone, smoking, income, survival analysis |
| JEL: | I14 I18 I31 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17274 |