Demand For Pensions Research Articles

Gender‐inclusive financial and demographic literacy: Monetizing the gender mortality gap

AbstractLongevity crucially affects demand for pensions, insurance products and annuities. Consistent empirical evidence shows that women have historically experienced lower mortality rates than men. In this article, we study a measure of the gender gap in mortality rates, we call “Gender Gap Ratio”, across a wide range of ages and for four countries: France, Italy, Sweden, and USA. We show the stylized facts that characterize the trend of the Gender Gap Ratio, both in its historical evolution and future projection. Focusing on an example temporary life annuity contract, we give a monetary consistency to the Gender Gap Ratio. We show evidence that a Gender Gap Ratio that ranges between 1.5 and 2.5, depending on age, translates into a significant reduction of up to 23% in the benefits from a temporary life annuity contract for women with respect to men, against the same amount invested in the life annuity. The empirical evidence discussed in this article documents the crucial importance of working toward a more widespread demographic literacy, for example, a range of tools and strategies to raise longevity consciousness among individuals and policy‐makers, in the framework of gender equality policies.

The Path, Limit and Optimization of Information Technology-Enabled Wisdom Pension: A Case Study of Haidian District

The demand for pensions is becoming increasingly important as Chinas population ages, but the outdated pension model has been unable to keep up with the senior populations changing needs. The advancement of science and technology has given Chinas pension system novel prospects and adjustments, but it has also created specific issues that must be resolved. This paper investigates the feasibility and sustainability of information technology-enabled wisdom pension in Haidian District, Beijing, focusing on development, advantages, disadvantages, and optimization strategies. The research takes the aging crisis of China as the background. It profoundly discusses the emergence of intelligent elderly care and the role of science and technology in reforming elderly care. A comprehensive examination of the development path in the Haidian District reveals government leadership, technological innovation, and community engagement as key drivers. While showcasing the advantages, such as improved quality of life and healthcare services, this study underscores the challenges: privacy concerns, accessibility, and the need for human interaction. At the same time, wisdom pension also needs to be combined with sustainable development to create a green pension model. This paper not only provides a scientific basis for the government, enterprises, and society to formulate relevant policies and strategies to promote the development of this pension model but also provides the future development direction and suggestions of the wisdom pension industry. In this case, the wisdom pension will develop better and comprehensively in China.

주택연금 가입자의 노후 대책 충분성에 대한 연구

This study uses a proportional odds logit model to find out the factors that affect the 'sufficiency of old-age measures prepared so far' for reverse mortgage users among the Housing Finance Corporation's “2021 Housing Pension Demand Survey”. Utilized. Through this, we tried to find an alternative to stabilizing the old-age income of the elderly, targeting the reverse mortgage subscribers. As a result of the analysis, the most influential factor on the sufficiency of reverse mortgage subscribers' retirement plans was the sufficiency of average monthly income, secondly the sufficiency of assets for living in their old age, thirdly satisfaction with reverse mortgage. And next, area of residence followed by average monthly income. The demographic characteristics of the reverse mortgage subscribers had no significant effect at all on the 'sufficiency of old-age measures prepared so far' except for the region. The reverse mortgage subscribers commonly receive monthly payments through a mortgage, so it can be seen that the average monthly income is more important than anything else. It was clearly derived from the analysis results of this study that the monthly income or pension paid each month is the most suitable means of economic stability in old age to prepare for the longevity risk of the reverse mortgage subscribers.

A Study on the Main Income Affecting the Distribution of Pension Income in China: A Case Study of Beijing

In the past few years, a large number of laborers in China have withdrawn from the market, resulting in a slowing down in the growth rate of the current economy as well as the total economic volume. In this context, the total scale of pension income distribution will therefore enter a state of slow growth even if the level of pension income distribution has improved. In the long run, a “contradictory” phenomenon will inevitably appear between the slow growth of pension income distribution and the rapid growth of pension demand, that is, the level of pension income distribution will not be able to meet pension needs. Accordingly, this paper aims to identify the main factors that affect the level of pension income in China, and to discuss how to optimize the level of pension income. Results show that the growth rate of the dependency ratio of the elderly has been in negative numbers for a long time, which indicates a shortage of available labor in China, and on the other hand, it reflects the stabilization and deepening of China’s aging. What is more, there is a causal relationship between the growth rate of residents’ disposable income and the growth rate of the dependency ratio of the elderly and the growth rate of China’s pension fund expenditure. In addition, the impact of local fiscal revenue on pension fund expenditure is not significant, so there is no explanatory significance for this work.

Determinants of Households’ Intention to Take Out or Convert to a Trust-Type Home Pension: Evidence from South Korea

ABSTRACT This study analyzes the determinants of Korean households’ intention to take out a trust-type home pension (Korean reverse mortgage) or switch from a collateral-type home pension to a trust-type home pension. Using a proportional odds logit model, we analyzed 2018 survey data on home pension demand. Trust-type home pension enrollment is most significantly influenced by homeowners’ relationship with children after enrollment, followed by homeowners’ need for retirement-related financial education. The presence (or absence) of a homeowner’s spouse most significantly influenced conversion intention, affirming that for homeowners with a spouse, their priority in pension selection was securing their spouse’s future entitlement.

Population Ageing and Future Demand for Old-Age and Disability Pensions in Germany – A Probabilistic Approach

Industrialised economies are experiencing a decline in mortality alongside low fertility rates – a situation that puts social security systems under severe pressure. Population ageing is associated not only with longer periods of pension claims but also smaller cohorts eventually entering the labour market. This threatens the sustainability of pay-as-you-go social security systems for implementing or further improving appropriate reform measures; adequate forecasts of the future population structure are needed.
 We propose a probabilistic approach to forecast the number of pensions in Germany up to 2040. Our model considers trends in population development, labour force participation, and early retirement, as well as the effects of pension reforms. Principal component analysis is used to manage the high degree of complexity involved in forecasting trends in old-age and disability pension claims, which arises because of cross-correlations between old-age and disability pension rates, different age groups, and gender. Time series methods enable the inclusion of autocorrelations of the pension rate time series in the model. Monte Carlo simulation is used to quantify future risk. The latter is an important feature of our model, as the future development of the population and, eventually, the pension claims and the financial burden resulting from those claims, are highly stochastic.
 The model predicts that, in the median trajectory, the number of old-age pensions will increase by almost 5 million between 2017 and 2036, alongside increases in the number of disability pensions by 2036. These numbers take account of the increase in legal retirement ages as part of the 2007 pension reform. After the mid-2030s, however, a moderate decrease can be expected. The results show a clear need for further reforms, especially in the medium term.

The Importance of Behavioural Factors for Pension Savings Decisions – Cross-Country Evidence

In this study, we challenge the problem of inadequate voluntary pension savings by exploring the micro-dataset of the Luxembourg Wealth Study (LWS) for three countries: Italy, the United Kingdom and the United States. The existing empirical literature usually focuses on the role of socio-demographic factors to understand this phenomenon, and theoretical studies additionally highlight the role of behavioural factors. However, empirical studies in this field are extremely scarce. The use of the LWS data enables us to fill this research gap. Separately for each country, we verify the role of individuals' risk attitudes and intertemporal choices in the demand for voluntary pension savings. To make the results more robust, we add a set of socio-demographic control variables to our regressions. Our findings clearly reveal that being more risk averse and being less forward looking negatively affect people's propensity to save for retirement. Furthermore, we confirm that age, gender and education are significant predictors of pension demand in each of the analysed countries. We argue that these conclusions have practical meaning to improve regulatory frameworks.

Deserving a Just Pension: A Factorial Survey Approach*

ObjectiveThis study analyzes which characteristics of pension recipients are taken into account when evaluating the fairness of pensions. Furthermore, it identifies some respondents’ characteristics and preferences that could be related to the justice evaluation of different pension amounts.MethodsA factorial survey was designed to simultaneously analyze the association of respondents’ and recipients’ characteristics with the pensions’ justice evaluation.ResultsFindings indicate that although there is a consensual demand for larger pensions, it is still believed that pensions should be allocated primarily based on individual achievement.ConclusionsAlthough in general, larger pensions are on average considered as more just, the justice criteria rely heavily on individual achievement over redistributive considerations, showing willingness to accept very low pensions for those considered not deserving them.

Research on the Influencing Factors of Social Network on Community Endowment of Elderly in Rural Areas of Shaanxi

On the basis of the data from “Shaanxi rural elderly community care situation questionnaire” in August 2015, this paper analyzes the support statement of the elderly in rural areas of Shaanxi province profoundly, and uses multivariate logistic regression analysis to investigate the influencing factors of the community endowment of the elderly in rural areas. Accordingly, to identify the real needs of the elderly in countryside. The research result reveals that these who have higher economic self-support ability are more inclined to choose community endowment. By contrast, those old person with a lower economic capability are willing to choose family endowment. At the same time, the choice to community endowment of the rural elderly is also restricted to the factors of old-age pension demand and supply.

Evaluation of LIC in Post Liberalised Era

The constitution of IRDA in August, 2000, opened up the market for private players in the insurance sector. In spite of privatization, the public sector giant, Life Insurance Corporation of India (LIC) has been still dominating the domestic insurance market. The paper reviews secondary study conducted to narrate ongoing debates on the privatization and globalization of insurance sector. Then, a comparative analysis of pattern of growth of life insurance industry comprising of LIC and other private players has been carried out. The paper finds that after over 40 years of successful journey, LIC still holds the dominant position while private players also gain grounds. However, though Indian Insurance sector has a huge potentiality, penetration of life insurance in Indian society is still limited as evident by various indicators. Moreover, LIC once having monopoly in this sector, is losing out to its private competitors. Unless strategic issues such as diversification of products, changing demography, demand for pensions, and allowing greater freedom with respect to its investments are addressed, LIC may find it difficult to adapt to liberalized scenario. The present study is an endeavor to evaluate the growth of LIC of India in the competitive scenario of liberalized and globalized insurance sector.

The Impact of the SGL System on Age Pension Demand in Australia

The Australian Superannuation Guarantee Levy system (SGL) and the Age Pension are linked through the income and asset test of the Age Pension system. Variations in likely demands for full or partial Age Pensions will occur as variations occur in the amount of retirement benefits that members of the SGL system receive. Despite the intention that the SGL system would reduce reliance on the Age Pension system, in this paper we demonstrate that there is a real possibility that this intended reduction may not occur.

Livable City Construction and Development Strategy under Ecological Pension Demand - Take Zhejiang Anji for Example

The concept and development practice of Ecological Pension is the product of a population aging in society, which reflects the respect for the elderly and nature, and also is the important content of livable city construction. This article will not only analyze the relationship between ecological pension and livable city construction from the perspective of ecological pension, but also study the ecological pensions demand on the development of the livable city taking Zhejiang Anji for example, and put forward the livable city construction development strategy suitable for the aging development situation.

Closing the age gap? Age, skills and the experience of work in Great Britain

ABSTRACTPopulations across Europe are ageing as death rates among the old and fertility rates among the young fall. This produces a number of long-term challenges for national governments – most notably, coping with the increased demand for social services, pensions and benefits that must be funded by a declining proportion of working adults. One policy response has been to extend people's working lives, but we know relatively little about the skills and employment experiences of older workers and how these compare with younger workers. This paper sheds new light on this issue by examining whether older workers do less well than their younger counterparts in terms of the skills of the jobs they hold, the quality of their working lives, their commitment to their current employer and to employment in general, and their attitudes towards and experiences of training. The paper also assesses whether these age gaps have closed over time. The empirical evidence for the paper is from five separate but comparable surveys carried out in 1986, 1992, 1997, 2001 and 2006. Taken together, the five surveys provide information on the employment experiences of over 22,000 workers in Great Britain. This allows us to chart whether we are witnessing the disappearance of at least some of the age divisions in the labour market.

A Pension for All: Pension Reform in the United Kingdom

British pension reform comprises three related strands of activity. The first centers on ensuring access to a State Pension that is fairer, more generous, and more widely available, tackling the historical inequalities in entitlement, especially for women. The second addresses a lack of demand for private pensions by placing a duty on employers to automatically enroll all eligible workers in a workplace pension and to contribute to that pension. The third addresses a perceived supply-side failure by setting up a new low-charge, simple pension scheme for those currently without access to a good quality workplace pension scheme - in particular, low-to middleincome earners. This article provides the historical context of these initiatives, and describes the strategies being employed to implement them.

What determines supply and demand for occupational pensions in Germany?

AbstractDemographic change causes an undersupply of financial old age benefits within the statutory pay-as-you-go pension system in Germany. Therefore, the provision of occupational as well as private pensions has to be enhanced. However, there seems to be an undersupply of occupational pension provision particularly in small and medium sized enterprises (SMEs). Using survey data of the German Socio-Economic Panel (GSOEP) and the German SAVE survey, the present paper studies econometrically the determinants of occupational pension provision in Germany. It shows that occupational pensions depend not only on supply-side factors such as firm size and industry, but also on demand-side factors such as individual sociodemo-graphic attributes and people's savings motives.

What Determines the Demand for Occupational Pensions in Germany?

Demographic change causes an undersupply of financial old age benefits within the statutory pay-as-you-go pension system in Germany. Therefore, the provision of occupational as well as private pensions has to be enhanced. However, there seems to be an undersupply of occupational pension provision particularly in small and medium sized enterprises (SMEs). Using survey data of the German Socio-Economic Panel (GSOEP) and the German SAVE survey, the present paper studies econometrically the determinants of occupational pension provision in Germany. It shows that occupational pensions depend not only on supply-side factors such as firm size and industry, but also on demand-side factors such as individual socio-demographic attributes and people's savings motives.

ANNUITIZED ASSET ADEQUACY IN JAPAN: THE DEMAND FOR INDIVIDUAL PENSIONS

In this paper, I analyze the impact of social security wealth, retirement payments, and living expenses during retirement on people’s retirement savings in general, and on their individual pension holdings in particular, using micro data from a 1996 Japanese household survey. I confirm a replacement effect of social security on saving for all types of households and on individual pensions for self-employed households only. This suggests that the social security assets of self-employed households are less than their optimal level of annuitized assets and that they would increase their demand for individual pensions if social security benefits were to be reduced.

As the population clock winds down: Indicative effects of population ageing in Australia’s States and Territories

Among the more profound features of population ageing is its regionality. This regionality is particularly marked in Australia, where the timing and speed of ageing are occurring at substantially different rates by state and territory. The shift to natural decline is expected to create many social, economic and political predicaments where it is first experienced. In Australia, Tasmania will be the first to enter natural decline, followed soon thereafter by South Australia, but not for several years by the youngest states and territories. These diverging demographic forces will have many implications for the complex mixture of federal, state and local government that currently adjudicates over policy-making and implementation, especially concerning the collection of taxes, the distribution of the goods and services of the Welfare State, and a large element of fiscal redistribution. This paper provides an overview of demographic characteristics and dynamics by region, and examines their projected effects on three socio-economic indicators: educational demand, the labour market, and demand for Age Pensions. The changing demography will have both beneficial and adverse affects, and unless the profound regionality is soon understood and engaged with, currently older and younger states are likely to encounter not only diverging demographic forces, but also diverging fortunes.

Economic Applications to Actuarial Work: Personal Pensions and Future Rates of Return

ABSTRACTThis paper considers certain applications of economics to actuarial work, concentrating on three issues of public interest. The background to the first two issues is the Government's encouragement of personal pensions particularly through stakeholder pensions. The paper shows how the use of an economics model enables investigations to be made, firstly on the demand for personal pensions by different income groups and secondly on the likely inequality of benefits between generations due to variations in the rates of return. The conclusion on the first issue is that personal pensions are of little benefit to low-earners, i.e. those the Government most wants to benefit, and recommends a way of rectifying this; the main conclusion on the second issue is that households will take action to mitigate much of the inequality. The third issue, that of estimating future rates of return, is one of key financial importance. The paper reviews relevant economic papers in this area and considers how the actuarial profession may improve communication with the economics discipline and with its members.

NHS pension demand for practice nurses

NHS pension demand for practice nurses