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In a rich, calibrated life-cycle model, we show that well-designed mandatory pension plans significantly improve the welfare of individuals procrastinating on savings, and even improve most rational individuals' welfare through a return tax advantage and fair annuitization. For a group of heterogeneous savers, in terms of preferences and sophistication, the best plan has contributions of 10% of income from age 30, a glidepath investment strategy, payouts following a variable lifelong annuity, and options to choose a different investment strategy and to modify the annuitization feature. This plan generates an average welfare gain of $175,000 per individual. [ABSTRACT FROM AUTHOR]

In recent decades, many European governments have passed pension reforms to incentivise participation in private pension plans. However, we still have minimal understanding of whether participation in such plans is concentrated in certain groups or spread uniformly across society, or what their stability over time is. To illuminate the social selectivity of these plans and potential changes in that selectivity over time, we analyse six waves of the Survey of Health, Ageing and Retirement in Europe (SHARE) in ten European countries: Austria, Belgium, Czech Republic, Denmark, France, Germany, Italy, Spain, Sweden and Switzerland. Specifically, we focus on participation gaps in individual and occupational plans of workers across six dimensions: gender, education, age, social class, income, and risk preference. The results indicate large and persistent social divides in participation rates. As expected, rates are significantly higher among workers who are not close to retirement, those with an upper service occupation and those with high income. Importantly, these divides did not shrink significantly over the period considered – 2006 to 2021. Social selectivity is not consistently smaller in contexts of more mature private pension provision, whereas it is consistently smaller in countries with more generous public pensions. [ABSTRACT FROM AUTHOR]

The physical and societal characteristics of home have been established as important in influencing the health and wellbeing of older adults, yet these have rarely been explored together. There is also limited research into variation across age groups, with older adults often examined as a homogenous group of those 65 years and over. This study advances the knowledge base by using the concept of person–environment (P-E) fit to analyse differences in personal and home environment (physical and societal) characteristics between young-old (65–74 years) and old-old (75 and above) age groups, and to assess how these characteristics influence their self-perceived health. This cross-sectional study draws upon survey data from 1,999 older adult participants from the Australian Housing Conditions Dataset. Descriptive statistics and inferential analysis were used to assess for significant differences between age groups and a binomial logistic regression was utilised to examine influences on health. The analysis found that the factors which influence health varies appreciably between age groups. For the young-old financial strain, being on the fixed-income pension and hypertension were important contributing factors, in contrast for the old-old gender (being male), having depression and the home being modified for disability were key influences. For both age groups heart disease was a contributing factor to perceived health. The results indicate the important contribution to knowledge of incorporating a wide range of person and environment characteristics when exploring P-E fit for older adults. The inclusion of societal aspects, such as financial strain, fixed-income pension, tenure and access to community aged care services when exploring influences on health, arises as a key conclusion of the study. In terms of impact, this research is significant given rising inequalities globally and specifically in the Australian context, the need for policy measures to address income inequality, and its health and social implications for older households. [ABSTRACT FROM AUTHOR]

Background: This longitudinal register study aimed to investigate the association between gambling disorder (GD) and work disability and to map work disability in subgroups of individuals with GD, three years before and three years after diagnosis. Methods: We included individuals aged 19–62 with GD between 2005 and 2018 (n = 2830; 71.1% men, mean age: 35.1) and a matched comparison cohort (n = 28 300). Work disability was operationalized as the aggregated net days of sickness absence and disability pension. Generalized estimating equation models were used to calculate adjusted odds ratios (AORs) and 95% confidence intervals (CIs) for the risk of long-term work disability (>90 days of work disability/year). Secondly, we conducted Group-based Trajectory Models on days of work disability. Results: Individuals with GD showed a four-year increased risk of long-term work disability compared to the matched cohort, peaking at the time of diagnosis (AOR = 1.89; CI 1.67–2.13). Four trajectory groups of work disability days were identified: constant low (60.3%, 5.6–11.2 days), low and increasing (11.4%, 11.8–152.5 days), medium–high and decreasing (11.1%, 65.1–110 days), and constant high (17.1%, 264–331 days). Individuals who were females, older, with prior psychiatric diagnosis, and had been dispensed a psychotropic medication, particularly antidepressants, were more likely to be assigned to groups other than the constant low. Conclusion: Individuals with GD have an increased risk of work disability which may add financial and social pressure and is an additional incentive for earlier detection and prevention of GD. [ABSTRACT FROM AUTHOR]

Old-age poverty in Korea remains exceptionally high among OECD countries despite a significant expansion in pension expenditure. This article presents an institutional explanation for such a puzzle. Using 'targeting within universalism' as the analytic framework, this study examines the institutional effects of pension models on old-age poverty in Korea. Firstly, comparative analysis finds that universal provision of pensions negatively affects old-age poverty independent of the expenditure size, identifying Korean pensions as the least universal among OECD countries. Secondly, institutional analysis of the Korean pension system explains why the expenditure growth left a large share of the elderly with no or a partial pension. Finally, microsimulation analysis examines alternative assistance pension models for their potential to alter poverty outcomes. Strikingly, universal models alleviate old-age poverty more cost-effectively than the extant targeting model, questioning the efficiency-based justification for low-income targeting. In particular, the universal floor model appears to be the most effective, allowing greater benefits to the poorer without a means test. Even for assistance benefits, universal models may better remedy poverty under such conditions as low take-up among the needy, prevalence of low-income incidence, and pro-rich distribution of extant social transfers. [ABSTRACT FROM AUTHOR]

We examine whether an individual's inability to save in the last 12 months affects the extent to which they are concerned about their future financial security and their propensity to plan for retirement. We use an original survey based upon representative samples of working individuals in 16 countries. We show that individuals who were unable to save over the 12-month period prior to the survey are less likely to consider well-being in retirement as their major financial concern. They are also less likely to invest in supplementary pension funds than those who were able to accumulate savings. We provide evidence that these findings are robust under several specifications and are mediated by respondents' perceived income prospects and assessment of their current financial situations. [ABSTRACT FROM AUTHOR]

The replacement rate (RR) is a quintessential property of pension systems. Yet, current measures of the RR are plagued with problems. We argue that the concept of RR should be based on the replacement of lifetime permanent income rather than pre-retirement income, and we show that the self-financeable RR with respect to the permanent income has the advantage of being independent of labor income (wages and density of contributions). We define an RR measure, called CRR, as the country-level RR of the permanent labor income that the working-age population could buy with their mandatory pension deposits if they stay constant over time. Pension deposits refer to national mandatory contributions plus the fraction of non-contributory pensions whose financing could be attributed to the working-age population, all as a percentage of the gross domestic product. The CRR is easy to compute and interpret, is nationally representative, and provides an international ranking because it is independent of pension rules, GDP, intertemporal and intergenerational redistributions, and sustainability. The application of the CRR to most OECD countries using the available data shows a 65% average across them, with several countries achieving a 100% RR, all mostly due to their high mandatory contributions as a percentage of GDP. [ABSTRACT FROM AUTHOR]

As the heterogeneity in life expectancy by socioeconomic status increases, many pension systems imply a wealth transfer from short- to long-lived individuals. Various pension reforms aim to reduce inequalities that are caused by ex-ante differences in life expectancy. However, these pension reforms may induce redistribution effects. We introduce a dynamic general equilibrium-overlapping generations model with heterogeneous individuals that differ in their education, labor supply, lifetime income, and life expectancy. Within this framework we study six different pension reforms that foster the sustainability of the pension system and aim to account for heterogeneous life expectancy. Our results highlight that pension reforms have to be evaluated at various dimensions. Reforms that may increase the sustainability of the pension system are not necessarily conducive to reduce the redistributive wealth transfers from short- to long-lived individuals. Our paper emphasizes the need for studying pension reforms in models with behavioral feedback and heterogeneous socioeconomic groups. [ABSTRACT FROM AUTHOR]

A comparison of the performances of pension products that ignores long-term trends might significantly overestimate the long-term impact of volatility risks while underestimating the impact of persistent, low-frequency trends. This paper proposes a comparison making use of projection models based on the long-term risk–return tradeoff proposed by Campbell and Viceira (2005) to explicitly take into account slow-moving economic trends. In order to illustrate the approach and its implications, we discuss the capital protection provided by life-cycle target-date fund strategies and minimum guarantee strategies. [ABSTRACT FROM AUTHOR]

Pension systems increasingly require active involvement from their participants for retirement planning. This leads to the need for a proper level of financial literacy to foster decision-making. Based on the Chilean Social Protection Survey and the Regional Development Index data, specific characteristics related to the region of residence, such as the quality of life, access to job opportunities, and available connectivity tools, are seen to have a positive impact on pension knowledge. Hence, these regional level results provide inputs to policymakers for developing appropriate policies regarding pension knowledge. [ABSTRACT FROM AUTHOR]

We study an OLG model with child policies and a PAYG pension with endogenous retirement and fertility. The result of the planned economy is compared to the decentralized competitive equilibrium deriving optimal policies. We show that in the presence of a PAYG pension system, the optimal policy mix includes an education subsidy and a subsidy for the supply of labor in old age. Fertility should be taxed or incentivized depending on whether there is full or partial retirement, and on the parameters. We focus on the parameter reflecting the deterioration of human capital and show that a child tax may be required. [ABSTRACT FROM AUTHOR]

Many countries have implemented policies to extend working lives in response to population ageing, yet there remains little understanding of what drives paid work in later life, nor how this is changing over time. This paper utilises the 1988/89 Survey of Retirement and Retirement Plans, the 1999 British Household Panel Survey and the 2008 English Longitudinal Study of Ageing, to investigate drivers of paid work in the ten years surrounding state pension age (SPA) for women and men in, comparing cohorts born in the 1920s, 1930s and 1940s. Using optimal matching analysis with logistic and multinomial regression models, the study assesses the relative importance of lifecourse histories, socio-economic circumstances and contemporaneous factors, in determining paid work in mid- and later life. Participation in paid work in the five years preceding and beyond SPA increased markedly for men and women across cohorts, with women's lifecourses and engagement with paid work changing considerably in these periods. However, for women, a lifetime history of paid work remained a crucially important predictor of paid work in later life, and this relationship has strengthened over time. Experiencing divorce has also become an important driver of paid work around SPA for the youngest cohort. Having children later, and still having a mortgage, also independently predict labour force participation for women and men. Across all cohorts and for women and men, working at these older ages was a function of higher income and better health. These findings suggest that policies which enable people to maintain ties to paid work across the lifecourse may be more effective at encouraging later-life employment than those concerned only with postponing the retirement transition. [ABSTRACT FROM AUTHOR]

State and local employees comprise a significant proportion of the workforce and are largely covered by defined benefit pensions. Many of these retirement plans have been facing funding gaps, but legal restrictions often prevent them from reducing benefits for current employees. However, retirement plans can reduce liabilities by changing cost-of-living adjustments, or COLAs, which are commonly applied to benefits each year to allow retirees to maintain purchasing power in retirement. In this study, we examine the prevalence of COLAs in public sector retirement plans through original data collection for 49 plans in 30 states, which cover approximately 52% of public sector workers overall. Among these samples, on average 45% of workers each year experienced some change in COLAs between 2005 and 2018, with more than half of these workers experiencing negative changes. We consider stylized examples of public sector workers subject to reductions in COLAs to understand how COLAs may affect workers' retirement decisions. Our analysis suggests that eliminating a 3% COLA could delay retirement of affected workers by approximately 4.5 months. [ABSTRACT FROM AUTHOR]

Extensive research by demographers and economists has shown that longevity differs across socio-economic status (SES), with low-educated or low-income people living, on average, shorter lives than their better-endowed and wealthier peers. Therefore, a pension system with a unique retirement age is a priori problematic. The usual policy recommendation to address this problem is to differentiate the retirement age by SES. This paper explores the relative merits of partial de-annuitization of public pensions as a way of addressing the (imperfectly assessed) inequality of longevity. [ABSTRACT FROM AUTHOR]

One of the most important financial decisions that pension participants make concerns how they access their pension assets when they terminate employment with their plan sponsor. Their choices depend both on own preferences and the options offered by their retirement plan. This paper examines both past and future pension withdrawal choices for those with defined benefit (DB) and defined contribution (DC) pensions, separately. Our data are drawn from a set of pension distribution questions we fielded in the Understanding American Study. Results show significant differences in distribution choices based on the type of retirement plan, with individuals covered by DB plans significantly more likely to select annuities compared to similar employees covered by DC plans. We also find differences in how higher annual income affects annuity choices based on coverage by DB plans. Individuals with lower levels of financial literacy and lower annual income have less knowledge of basic pension characteristics. [ABSTRACT FROM AUTHOR]

Previous studies on health and socio-economic determinants of later-life labour force participation have mainly come from high-income European countries and the United States of America (USA). Findings vary between studies due to different measures of socio-economic status and labour force outcomes. This study investigated longitudinal associations of physical incapacity and wealth with remaining in paid employment after age 60 in middle- and high-income countries. Using harmonised cohort data in the USA, England, Japan, Mexico and China (N = 32,132), multilevel logistic regression was applied for main associations. The age-related probabilities of remaining in paid employment by physical incapacity and wealth were estimated using marginal effects. This study found that physical incapacity predicted lower odds of remaining in paid employment in each country. Wealth was associated with higher odds of remaining in paid employment in the USA, England and Japan, but not in Mexico. Probabilities of remaining in paid employment were high in Mexico but low in China. The absolute difference in the probability of remaining in paid employment between the richest and the poorest groups was greater in the USA than that in any other country. In the USA, England and Japan, the inverse association between physical incapacity and remaining in paid employment could be partially compensated by wealth only when physical incapacity was not severe. National policies, including considering older adults' changing capacities for job placement and prioritising the provision of supportive services for socio-economically disadvantaged older adults, developing pathways for informal workers to access social security and pension coverage, and encouraging employers to hire socio-economically disadvantaged older workers and enhancing their employability, could be facilitated. Future studies, such as exploring health and socio-economic determinants of remaining in part-time and full-time paid employment separately in more countries, and the moderating effects of relevant policies on these associations, are needed. [ABSTRACT FROM AUTHOR]

Since the 2000s, migration within and into the European Economic Area (EEA) has increased significantly. Some migrants will retire in their destination countries. This makes questions about their retirement protection increasingly relevant for social policy. To address this, we examine past experience. Using the Survey of Health, Ageing and Retirement in Europe (SHARE), we compared the pensions of post-1945 migrants, who settled in their host country, with non-migrants. We considered migrants who moved into and within the EEA, from poorer and richer countries. Where pensions were lower we sought to explain this in relation to the migration literature. As expected, we found some evidence that migrants' pensions were lower, although significant variations were observed between EEA migrants and non-EEA migrants. However, surprisingly there were few indications that migrant pensions were lower because migrants as a whole were disadvantaged through late labour market entry or employment discrimination. Instead educational disadvantage mattered most, particularly for the highly educated: all highly educated migrants received lower rewards for their human capital than comparable non-migrants. Migrants who settled in countries with less-protective pension systems were also disadvantaged. Making retirement outcomes for migrants more equal would, thus, mean improving career opportunities for highly educated migrants and steps towards more-inclusive pension systems everywhere. [ABSTRACT FROM AUTHOR]

Germany is one of the few countries in Europe that has implemented a system of 'divorce splitting'. Under this system, the pension credits that spouses have accumulated during their marriage are combined and then split equally between them upon divorce. This study examines how divorce affects public pension entitlements in Germany, and how these patterns are influenced by the system of divorce splitting. The data for our analysis comes from SHARE-RV, a direct linkage of the Survey of Health, Ageing and Retirement in Europe (SHARE) with administrative data of the research data centre of the German Pension Insurance Fund (Deutsche Rentenversicherung Bund). The data include information on the beneficiaries' monthly earnings and employment biographies, as well as on their pension entitlements and the credits they received through divorce splitting. The results of the analysis, which was restricted to West German men and women born between 1935 and 1954, reveal that there are large gender gaps in public pension benefit levels. However, the investigation also shows that single and divorced West German women have larger personal pension entitlements than their married or widowed counterparts. Furthermore, the public pension entitlements of divorced men and women in West Germany are very similar. This can be attributed partially to the divorce-splitting system, which tends to increase the pension benefits of divorced women, while reducing the pension benefits of their male counterparts. [ABSTRACT FROM AUTHOR]

This study proposes a novel and systematic theoretical framework to explain global welfare state policy differences. The existing scholarship examined ample welfare state variations, reforms, and transitions; however, it is typically limited to specific countries, regions, policies, or risks. In an endeavor to combine these theoretical and empirical insights, the global contemporary welfare state patterns remain vague. This study aims at bridging this gap in the literature by deploying an orderly and comprehensive three-step procedure. First, I formally design a three-stage global yet comparative conceptual framework that ensures consistency, inclusiveness, and compliance. Second, based on this framework, I assemble a unique comparative dataset for one-hundred-fifty countries, some of which appear for the first time in this literature. Third, I validate the framework using an advanced data reduction method named model-based cluster analysis. The results of this study demonstrate that global contemporary welfare states follow systematically divergent paths, revealing Proactive, Reactive, and Dual patterns. [ABSTRACT FROM AUTHOR]

This paper examines inter-industry patterns of the employment of older workers over the last 20 years to understand where employment opportunities have grown the most. The underlying premise is that firms strategically align their age mix depending on production function and labor cost parameters. The industries that had the largest increases in the percentage of older workers were those that had the broadest pension coverage and those that made the greatest use of high-tech capital. There also is evidence in 2001–07 that the percentage of older workers increased more in the industries most exposed to increased Chinese imports. [ABSTRACT FROM AUTHOR]

We investigate the impact of a 2005 policy that provided more generous terms for delaying state pensions in the United Kingdom. First, we find that the policy reduced the fraction of males and possibly females receiving pensions at the earliest eligibility age and shortly thereafter. This shift affected cohorts who became eligible for state pensions at or after the policy change. Second, the policy is associated with increases in male and female labor supply around the earliest pension eligibility age, consistent with some individuals working longer to finance pension delay. However, further analysis suggests that these labor supply changes are more likely to reflect longer-term trends across birth cohorts rather than a causal effect of the policy. [ABSTRACT FROM AUTHOR]

This paper examines financial literacy in Canada using a dataset from early 2023 that measures the knowledge of middle-aged Canadians regarding their retirement income system. We first document important financial literacy differences across gender, age, education, and labor market status. Using detailed questions on the four main aspects of the retirement income system, we then show a strong correlation between financial literacy and the knowledge of the retirement system in Canada. Finally, we provide evidence that general financial literacy and knowledge of the retirement system matter for retirement preparation, by showing that Canadians with higher financial literacy scores and better knowledge of the retirement system are more likely to have a plan for retirement. [ABSTRACT FROM AUTHOR]

Fertility, particularly at its current low level in many developed countries and high level in some less developed countries, is a key factor driving demographic, economic, and societal changes at local, national, and global levels. Population ageing due to low fertility and increasing longevity represents one of the most significant global megatrends and risks. Many countries are already experiencing population decline and rapid growth of their elderly populations, with implications for workforce size, economic development, health and pension schemes, and social security arrangements. Actuaries are well known for their work on mortality and morbidity, but they have rarely considered fertility and its proximate determinants, despite their demographic and economic effects. This paper explores key explanations and outcomes of past and projected future fertility trends, and the implications for actuaries and for political and economic decision-makers. [ABSTRACT FROM AUTHOR]

A growing scholarship has documented changes in welfare policy in twenty-first-century Latin America, but no study yet has offered a systematic assessment, using a welfare regime approach, that captures the main trends across countries and over time. For a sample of 17 countries, this study offers a comprehensive tool to measure shifts in social policy regimes, highlighting three dimensions of welfare – inclusion, generosity, and equity – across four policy areas: transfers, health care, education, and family policies. Countries made significant progress in generosity and inclusion, but none improved equity. A cluster analysis based on the three dimensions of welfare offers a new, more precise classification of Latin American countries in welfare regimes in 2002 and 2017. Although the analysis shows minor shifts in country groupings, an increasing reliance on social assistance policies, particularly among the most advanced countries, marks a shift towards what I call compensatory regimes. [ABSTRACT FROM AUTHOR]

Many nations incentivize retirement saving by letting workers defer taxes on pension contributions, imposing them when retirees withdraw their funds. Using a dynamic life-cycle model, we show how 'Rothification' – that is, taxing 401(k) contributions rather than payouts – alters saving, investment, consumption, and Social Security claiming patterns. We find that taxing pension contributions instead of withdrawals leads to delayed retirement, somewhat lower lifetime tax payments, and relatively small reductions in consumption. Indeed, the two tax regimes generate quite similar relative inequality metrics: the relative consumption inequality ratio under taxed-exempt-exempt (TEE) is only 4% higher than that in the exempt-exempt-taxed (EET) case. Moreover, results indicate that the Gini measures are also strikingly similar under the EET and the TEE regimes for lifetime consumption, cash on hand, and 401(k) assets, differing by only 1–4%. While tax payments are higher early in life under the TEE regime, they are slightly lower in the long run. Moreover, higher EET tax payments are also accompanied by higher volatility. We therefore find few reasons for policymakers to favor either tax approach on egalitarian or revenue-enhancing grounds. [ABSTRACT FROM AUTHOR]

In this paper, we derive the optimal cyclical design of a target benefit (TB) pension plan that balances the sustainability and the benefit stability using the optimal control approach. The optimal design possesses a linear risk sharing structure with cyclical parameters. We observe that the optimal design should be pro-cyclical in the usual circumstances, but counter-cyclical when the pension plan is severely in deficit. We compare the TB plans with the defined benefit plans and conclude that a more aggressive investment strategy should be adopted for the TB plans. In the end, we provide a cautionary note on the optimal control approach in the study of the TB plans. [ABSTRACT FROM AUTHOR]

Based on two decades of Danish register data at the individual level, this paper finds that a 1-dollar increase in pension wealth leads to a 42-cent rise in total debt for a group of low-wage earners. Collective bargaining in the labor market provides time-sector variation in mandatory pension contribution rates, which we exploit in two empirical research designs; an event study and a cross-sectional instrumental variable regression model. Both methods demonstrate that the debt rise is accompanied by increased housing wealth and homeownership rates. Together, the empirical evidence indicates that mandatory pension contributions lead to a significant increase in net wealth, as well as in gross debt. [ABSTRACT FROM AUTHOR]

Many pension reforms in OECD countries included pension statements with the objective of improving individuals' financial security in retirement. Our objective is to assess the effectiveness of the pension information policy implemented in France and to investigate whether the pension statement results in better informed workers, who then increase their retirement savings. Using regression discontinuity designs combined with quantile regressions, we assess whether the changes in retirement savings and holding of assets are due to the pension information system and then quantify the impact. We conclude that a pension estimate sent to workers encourages the wealthiest to increase their retirement savings while it does not influence the savings of individuals with a low level of wealth. [ABSTRACT FROM AUTHOR]

This paper presents the results of a choice experiment that is designed to examine whether changing how plan information is presented affects planned retirement-savings behavior. The main hypothesis is that providing plan information in a more concise format with helpful recommendations, rather than providing lengthy and detailed information, will alter retirement-planning choices. The specific choices examined include: whether to enroll, how much to contribute, and how to structure (broadly) the asset allocation. The choice experiment is conducted on three different samples: (i) a Qualtrics panel of new employees, (ii) a Qualtrics panel of job seekers, and (iii) a sample of business-school students. Our results suggest that, controlling for demographic and other factors, our main hypothesis was not supported by the data in any of the samples. Thus, the data cast some doubt on the notion that simplifying and condensing the retirement-plan information presented to employees will result in vastly different retirement-planning choices. [ABSTRACT FROM AUTHOR]

We examine financial literacy in Finland and its connection with various financial outcomes using novel survey data collected in 2023. While the overall Finnish financial literacy level is about average among the OECD countries, there is significant heterogeneity within the population. Women have lower financial literacy than men. The young and the old have lower financial literacy than respondents in their prime working age, and entrepreneurs have higher financial literacy than other groups. Financial literacy is also correlated with higher educational levels. We further study the relationship between financial literacy and a number of economic outcome variables. We find financial literacy to be negatively related to coping with a major expense, facing an income shock, and with perceived over-indebtedness. However, we do not find a statistically significant relationship between financial literacy and retirement planning in Finland. [ABSTRACT FROM AUTHOR]

This paper examines financial literacy in the United States, using the 2021 National Financial Capability Study data. A large volume of papers have demonstrated the importance of financial knowledge and documented the low level of financial literacy in America. Using recent data collected during an unusual time when inflation was rising and the country was in the midst of the COVID-19 pandemic, we show that the knowledge of fundamental financial concepts continues to be low in the US, especially among people who are young, less educated, female, or not employed. Our analysis also highlights people's lack of inflation knowledge and identifies the subgroups that are particularly vulnerable. Finally, we examine how financial literacy affects financial well-being and behaviors. Responses to the Big Three financial literacy questions are linked to important financial behaviors and outcomes, including planning for retirement, financial resilience, and not carrying too much debt. [ABSTRACT FROM AUTHOR]

In this paper, we provide an analysis of financial literacy in Peru and Uruguay. We find that the knowledge of simple concepts at the basis of financial decision-making is low in both countries. Not only is financial illiteracy widespread, but it is particularly acute among women, rural populations, the less educated, low-income people, the self-employed, the not employed, younger people (in the case of Peru), and older people (in the case of Uruguay). We also find that financial literacy is linked to measures of financial wellbeing: those who are financially literate are more likely to be able to save and plan for retirement in both countries. In addition, we find a relationship between knowledge of specific concepts and key financial behaviors. Lastly, we find a relationship between financial literacy and financial resilience [ABSTRACT FROM AUTHOR]

While existing research suggests that nineteenth-century child labor laws largely failed to significantly reduce children's workforce participation, we examine whether policies that tackled the problem by providing aid – rather than by penalizing work – were more effective. Between 1910 and 1920, forty U.S. states enacted mothers' pension programs, giving needy "deserving" mothers, typically widows, cash aid to support their dependent children. One purpose of the programs was to reduce child labor. However, we find no negative relationship between child labor and the generosity of states' mothers' pension laws. Furthermore, we find no negative relationship between child labor and county-level mothers' pension generosity, in terms of expenditures, in the seven states for which we have data. We attribute this to the small size of the pensions as well as the programs' limited coverage and general lack of conditionality on children's behaviors, such as attending school or not engaging in paid work. We also note states' and counties' limited administrative capacity to enforce eligibility requirements, such as school attendance, where these existed. [ABSTRACT FROM AUTHOR]

Ever more people are in paid work following the age of state pension availability, and yet the experience of working in this phase of the late career has been little studied. We interviewed a purposive sample of 25 Swedish people in their mid- to late sixties and early seventies, many of whom were or had recently been working while claiming an old-age pension. The data were analysed with constant comparative analysis in which we described and refined categories through the writing of analytic memos and diagramming. We observed that paid work took place within a particular material, normative and emotional landscape: a stable and secure pension income decommodifying these workers from the labour market, a social norm of a retired lifestyle and a looming sense of contraction of the future. This landscape made paid work in these years distinctive: characterised by immediate intrinsic rewards and processes of containing and reaffirming commitments to jobs. The oldest workers were able to craft assertively the temporal flexibility of their jobs in order to protect the autonomy and freedom that retirement represented and retain favoured job characteristics. Employed on short-term (hourly) contracts or self-employed, participants continually reassessed their decision to work. Participation in paid work in the retirement years is a distinctive second stage in the late career which blends the second and third ages. [ABSTRACT FROM AUTHOR]

The low retirement age has imposed a heavy economic burden on the pension system in China, leading to an ongoing debate about raising the retirement age. To understand the potential costs of raising the retirement age, we need to consider the health effects of retirement policies. Using the China Health and Retirement Longitudinal Study (CHARLS) from 2011 to 2015, this study employs the statutory retirement age as the exogenous variable of retirement and applies a fuzzy regression discontinuity design (RDD) to examine the effect of retirement on the health of Chinese elderly people. We find that retirement has a non-significant effect on health with respect to a series of health indicators, different bandwidths of RDD and sub-sample groups. The finding is also robust across different retirement definitions and retirement ages. This result may be attributed to the minimal changes in income and lifestyles before and after retirement. Moreover, the findings of this study provide important evidence for policy makers to increase retirement ages in China. [ABSTRACT FROM AUTHOR]

This article unpacks the music of the Townsend Plan, an ambitious Depression-era pension proposal, and the overlooked, yet deeply influential, national movement of its supporters, which aimed to simultaneously eradicate old-age poverty and revive the national economy. As well as providing a musical account of the media strategies, political tactics, and institutional culture of Townsendism, this article charts how different demographics of US society also mobilized popular music in arguments for or against pensions in the 1930s and 1940s. In the process, the article highlights some of the rich discourse about welfare, health, and aging in the mid-twentieth-century USA. [ABSTRACT FROM AUTHOR]

In most rapidly ageing industrialised countries, ageing problems have become an important social issue. In Japan, owing to the rapidly ageing population, the government has been intervening in both the demand side and supply side of labour to increase employment of older adults. This study examines labour supply responses to the increasing pension eligibility age and labour demand responses to company expansion and the abolition of the employee selection mechanism. This study is based on Japanese longitudinal survey data (Keio Household Panel Survey) from 2008 to 2018. Since employment law revisions and social security revisions are inextricably linked, one way to examine the effect of revisions to both simultaneously is to investigate them by cohort. The difference-in-difference model was used to compare revision-affected cohorts born between April 1953 and January 1956 and unaffected cohorts born between April 1949 and March 1953. It was found that the revisions had almost no impact on the employment of older adults and their receipt of pensions. However, they did have significant positive effects on job transfers and resignations. Hence, although the system was modified, it also gave companies the option of placing older adults in associated companies and of retaining some routes for older adults to retire, much as before the revisions. [ABSTRACT FROM AUTHOR]

The expansion of social pensions in Latin America was part of a larger process aimed at extending protections to informal workers and other individuals not covered by social insurance. These reforms were enacted by governments of different colours, and varied considerably with regard to the scope of the new programmes. While previous comparative studies have privileged economic factors and electoral dynamics to explain these differences, this article extends these frameworks to incorporate the interplay between contentious and institutional politics. It uses a two-step qualitative comparative analysis to investigate the long-term effect of protests on reforms extending the coverage of social pensions under different constellations of political, economic and institutional conditions in 18 Latin American countries (2000-2011). The results show that protest was present in almost all configurations of expansion, but that its effect was contingent on the ideology of governments, the levels of political competition and the strength of unions. [ABSTRACT FROM AUTHOR]

Pension adequacy is gaining importance as old-age poverty remains a pressing problem. In many advanced welfare states, the population is ageing rapidly and recent pension reforms have led to cuts in public pension provision. There are, however, few comparative longitudinal studies on the relationship between pension generosity and old-age poverty. This study provides a comparative empirical assessment of how the prevalence and depth of old-age poverty relates to generosity of public pension benefits in 14 advanced OECD welfare states from 1980-2010. We focus on the role of mandatory public pension provision of mainly first tier schemes that grant the major share of retirees' income in most countries. We use data on theoretical pension replacement rates for retirees who had different working-age incomes. In order to address endogeneity issues, we adopt an instrumental-variable approach. Our main finding shows that pensions systems and earnings-related schemes, in particular, are quite efficient in reducing the risk of old-age poverty. Yet they still do very little to alleviate poverty among those pensioners in the most disadvantaged situations. We also found that redistribution within the pension system does not substantially contribute to poverty alleviation. [ABSTRACT FROM AUTHOR]

Growing fiscal challenges and ageing populations have made pension reform a pressing issue. Two particularly salient areas of pension reform have been: raising the retirement age; and structural reforms like the adoption and reversal of pension privatisation. The authors compare two very similar cases: Russia and Hungary in the post-communist period. Both countries faced growing demographic and fiscal challenges prompting pension reform, but at the time of reform Hungary was democratic and Russia was authoritarian. Some scholars predicted that authoritarian governments would be better able than democratic ones at enacting unpopular, but arguably necessary, economic reforms. Others argue that democratic governments can more easily enact policy changes because of greater confidence about public opinion. Additionally, authoritarian policymaking can be uniquely slowed by bureaucratic in-fighting. The authors find support for the position that democratic governments can be more flexible: thus offering important insight into how regime type shapes policymaking. [ABSTRACT FROM AUTHOR]

This paper documents the patterns and correlates of retirement in China using a nationally representative survey, the China Health and Retirement Longitudinal Study. After documenting stark differences in retirement ages between urban and rural residents, the paper shows that China's urban residents retire earlier than workers in many Organization for Economic Co-operation and Development countries and that rural residents continue to work until advanced ages. Differences in access to generous pensions and economic resources explain much of the urban–rural difference in retirement rates. The paper suggests that reducing disincentives created by China's Urban Employee Pension system, improving health status, providing childcare and elder care support may all facilitate longer working lives. Given spouse preferences for joint retirement, creating incentives for women to retire later may facilitate longer working lives for both men and women. [ABSTRACT FROM AUTHOR]

While there have been numerous studies illustrating the rather low level of financial knowledge of Americans, there have been only a few efforts to examine the effectiveness of employer-provided programs in enhancing financial literacy and the ability of these programs to modify worker retirement and saving decisions. In this paper, I summarize the findings from a series of studies conducted over the past 20 years. All of the studies were done in conjunction with employers. The primary objectives of this research have been to evaluate the effectiveness of onboarding and retirement planning programs and the financial education provided in these programs. In addition, employer nudges to mid-career employees are examined. I describe the impact of financial planning programs on worker knowledge of key financial concepts and their ability to make better decisions concerning saving decisions and the timing of retirement. I also provide recommendations on how to improve the effectiveness of workplace financial education programs. [ABSTRACT FROM AUTHOR]

Background: The objective of this population-based register study was (1) to investigate the association between young adults diagnosed with attention-deficit/hyperactivity disorder (ADHD) and subsequent labour market marginalisation (LMM) in two comparison groups, i.e. matched young adults from the general population without ADHD and unaffected siblings to persons with ADHD and (2) to assess the role of comorbid disorders. Methods: This study included all young adults in Sweden, aged 19–29 years, with an incident diagnosis of ADHD 2006–2011 (n = 9718). Crude and multivariate sex-stratified hazard ratios (HRs) with 95% confidence intervals (CIs) were measured 5 years after the diagnosis of ADHD for the risk of disability pension, long-term sickness absence (SA) (>90 days), long-term unemployment (>180 days) and a combined measure of all three in young adults with ADHD compared to their siblings without ADHD and a matched comparison group. Results: In the adjusted analyses young adults with ADHD had a 10-fold higher risk of disability pension (HR = 10.2; CI 9.3–11.2), a nearly three-fold higher risk of long-term SA (HR = 2.7; CI 2.5–2.8) and a 70% higher risk of long-term unemployment (HR = 1.7; CI 1.6–1.8) compared to the matched comparison group. The risk estimates were lower compared to siblings for disability pension (HR = 9.0; CI 6.6–12.3) and long-term SA (HR = 2.5; CI 2.1–3.1) but higher in the long-term unemployed (HR = 1.9; CI 1.6–2.1). Comorbid disorders explained about one-third of the association between ADHD and disability pension, but less regarding SA and long-term unemployment. Conclusions: Young adults with ADHD have a high risk for different measures of LMM and comorbidities explain only a small proportion of this relationship. [ABSTRACT FROM AUTHOR]

Using a natural experiment to identify the causal effect of an increase in default risk on firm actions, I find little evidence managers shift risk to corporate pension plans following an exogenous shock to the firm's long-term liabilities. The finding is robust to focusing on firms where the incentive to engage in risk shifting is arguably the greatest, such as financially vulnerable firms and firms with fewer agency conflicts. This study casts doubt on the risk-shifting hypothesis and shows managers do not take risk-shifting actions that would increase shareholder value even when those actions pose little threat to managerial utility. [ABSTRACT FROM AUTHOR]

This study examines the effects of an old-age allowance programme in Taiwan, the Senior Citizens Welfare Living Allowance (SCWLA), on intergenerational financial transfers, living arrangements and contact, as well as the heterogeneity of its effects by adult children's five types of motives for giving: altruism, exchange, reciprocity, affection, and sense of responsibility. Using 2002, 2004, 2005 and 2006 data from the Panel Study of Family Dynamics, we employed a difference-in-difference individual fixed effect model to compare the outcomes across the treatment (aged 65 and older) and comparison groups (aged 55 to 64) before and after the introduction of SCWLA. Our results indicate that SCWLA crowds in intergenerational contact but does not significantly change financial transfers and co-residence patterns. The increase in intergenerational contact is primarily driven by adult children having lower motives for giving. This suggests that old-age allowances may reduce financial entanglement between adult children and older parents and change the social norm by raising "low motivators'" awareness, respect and concern for elderly. Providing public transfer to the elderly should not be hampered by the fear of distorting family support functions. [ABSTRACT FROM AUTHOR]

Mortality at older ages varies by season, increasing the uncertainty associated with modelling and projecting mortality at older ages and ultimately contributing to pension providers' overall risk. As the population ages, it becomes more important to understand variations in seasonal mortality between pensioners and to identify those most vulnerable to seasonal mortality differences. Using data from the Self-Administered Pension Schemes mortality investigation of the Continuous Mortality Investigation of the Institute and Faculty of Actuaries, UK, this paper investigates variations in seasonal mortality amongst members of UK occupational pension schemes over the period 2000--2016. Results are also compared with the corresponding population of England and Wales. For the oldest age groups (80+), which are most affected by seasonality, females are more vulnerable to seasonal differences in mortality for each pensioner group relative to males. Following a long-term decline in the winter-summer mortality gap the gap increased over the period, particularly for female pensioners and dependants. Seasonality remains a feature of UK mortality at older ages and risk management for pension schemes should consider seasonality when analysing overall mortality experience. [ABSTRACT FROM AUTHOR]

This paper examines the intertemporal choice preference for long-term savings of cocoa farmers in Ghana. We test the uptake of two pension products: with one, famers are free to withdraw 50% of their savings with no penalties prior to retirement age; with the other, only 30%. Using a randomised controlled trial we test the difference in uptake of two pensions products where we vary the flexibility of cash withdrawals from the pension account. We find an overall higher uptake of the more flexible pensions account, especially for women, who cannot inherit land titles in Ghana. [ABSTRACT FROM AUTHOR]

We study how pension participation and expected pension benefits affect working-age adults' consumption based on a nationally representative dataset from the China Health and Retirement Longitudinal Study (CHARLS) during the period 2011–2018. We find that the consumption of working-age adults who participate in China's Residents' Basic Pension is 15.4% higher than that of non-participants. Furthermore, we find that if working-age adults' expected pension benefits increase by RMB 1, their consumption will increase by RMB 0.34. Overall, our findings suggest that pension expectations are critical to the consumption decisions of working-age adults and can, therefore, positively affect total domestic consumption. [ABSTRACT FROM AUTHOR]

This paper compares how pension obligations impact the market value of United States corporations under two accounting regimes. Using a sample of firms that disclosed pension liabilities under Statement of Financial Accounting Standards (SFAS) No. 87 from 2001 to 2005 and recognized them under SFAS No. 158 from 2006 to 2014, I find that equity market participants take into account the net position of the pension fund only if it is recognized on the sponsor's balance sheet, thus mispricing the pension deficit/surplus under the disclosure regime. I also provide evidence suggesting that investors' perception of pension deficits/surpluses changed with the introduction of SFAS No. 158 in 2006. [ABSTRACT FROM AUTHOR]

This study examines retirement saving activity outside the state and workplace pension saving schemes among British adults aged between 30 and 49 on the premise that individuals are increasingly encouraged to save for their retirement in the new pension policy structure in Britain. The issue of under-saving among the younger adults has been studied with the focus on internal characteristics, such as undesirable attitudinal or behavioural tendencies ('won't save'), or on external factors, such as income ('can't save'). Building on these discussions, this study tests the role of internal characteristics and further examines the interplay between internal and external factors. The decision-making process for retirement saving is mapped based on the Model of Financial Planning with minor modifications. The analysis utilises the fourth wave of the Wealth and Assets Survey (2012/2014), and is conducted in the structural equation modelling framework. Results show that younger adults' discretionary retirement saving is an outcome of a complex interplay between internal and external factors. Financial resilience , which indicates current financial behaviours and wellbeing, is found to be the strongest predictor for identifying a discretionary retirement saver, but it is closely connected to individuals' income and home-ownership. The findings also suggest that social and economic arrangements are important to consider as social ageing , individuals' projection on their lifestages, may be more informative than age per se for understanding younger adults' retirement saving behaviour. These findings have important implications for the policies that aim to increase retirement saving participation. [ABSTRACT FROM AUTHOR]