Retirement Pension Research Articles

Does retirement reduce familiarity with Information and Communication Technology?

This paper analyses the effect of retirement on the familiarity with Information and Communication Technology (ICT) of older individuals. We argue that inability to cope with ICT might represent a threat for older individuals’ social inclusion. To account for the potential endogeneity of retirement with respect to familiarity with ICT, we instrument retirement decision with the age-eligibility for early and statutory retirement pension schemes. Using data from the Survey of Health, Ageing and Retirement in Europe, we show that retirement reduces the computer literacy and the frequency of internet utilization for men and women. This finding is robust to the inclusion as control factors of health, cognition and social network indicators, which the literature has shown to be affected by retirement. Overall, the reduction in the familiarity with ICT after retirement tends to be stronger in the long-run.

Pensions and Timing of Retirement: The Case of the Public Service Pension Scheme in Uganda

Unsustainable defined-benefit public pension scheme, rising life expectancy, and high level of unemployment endanger the socioeconomic and political stability of Uganda’s economy. This research approaches the problem from labor supply point of view by: (i) analyzing the effect of the public service pension scheme on timing of retirement; (ii) investigating the required early retirement incentives that would increase employment in the public service; and (iii) determining the predictors of postretirement employment in the public service in Uganda. Using a cross sectional secondary dataset of the retired public servants from the Uganda’s Pension Department of the Ministry of Public Service (2016), this study finds the model fitting the observed aggregate retirement behavior very well. Results reveal: first, that the retirement conditions in the public service’s pension scheme in terms of the: mandatory retirement age (MRA), early retirement age (ERA), minimum tenure (MT), and pension benefits; significantly influence timing of retirement. This implies that the public service pension scheme in Uganda can be used as a fiscal tool for addressing labor supply challenges in the country.Second, about 20 percent increment in the monthly pension benefits, and 10-year increment in ERA jointly with a 5-year increment in MRA raises the likelihood of new jobs pace by up to 12.2 percent and 30 percent respectively, through early retirement.This implies that these early retirement incentives can be used to achieve intra-generational equity where some previously employed public servants retire early and survive on pension benefits as few unemployed people join public service to earn a wage.Third, among other predictors, postretirement employment in the public service is explained by:entry age, tenure, and salary. These factors can be used by the government to achieve a sustainable pension scheme through oldage employment (increased labor supply) which reduces the years taken to claim pension benefits.

Legislation in Illiberal Poland

ABSTRACT Poland and Hungary seem to represent the same type of constitutionalism. It can be defensibly labelled as illiberal, as it is based on a longing for a charismatic leader and specific national identity, combining individual freedom with non-liberal values, and distances itself from western standards comprising the Rule of Law, democracy, and human rights protection. Weak restraint is provided by EU and international norms and procedures. The aim of this paper is to recognize the tendencies in legislative practice in Poland since 2015 that are associated with the illiberalization of the constitutional system, and investigate their role in deterioration of the legislative quality, and thus, maintenance of illiberal constitutionalism. These tendencies are detected as inequality, defective constitutional justice and compromised judicial independence, accelerated and pure majoritarian approach to legislation, and illiberal content of laws. It is found that the legislation has been fuelled by the majoritarian vision of a state community that is emphasized in the political narrative of the ruling alliance. This vision has been transformed into political decision-making and situated against rule-of-law considerations. It generates de facto discrimination against certain groups of people (LGBTQI+), de iure inequalities (retirement age and pension), and the will of the (majority of) people is placed above the Constitution. A captured constitutional court is not able to defend the Constitution. The legislative process has been accelerated to such an extent that there is no meaningful discussion, consultation, or public participation in the procedure. The statutes are abused for informal constitutional changes or have symbolic meaning without proper legislative effectiveness. Legislation during the COVID-19 crisis has not improved the quality of laws at all and could not properly addressed the criticism emerged after some experiences of the pandemic-related functioning of the parliament and government. The combination of all these tendencies makes the Polish legislative practice distinctive in its illiberal tone.

Five years of police tasks as a condition for receiving a uniform pension by former and current custom officers

For many years, the Custom Service was the uniformed service that was not entitled to a pension under a separate act on retirement pensions for officers under which the other services were subjected to. On 1 January 2018 it was included in this act, however on condition that an officer has worked for five years performing police tasks. These tasks turned out to be a matter of dispute. The aim of the article is to present the complex issue of five years of police tasks and their interpretation in the context of receiving a uniformed pension by former and current Customs (customs and tax) officers.

The Janus face of austerity politics

How is social reproduction possible in a context of precarious employment and austerity policies that have defunded welfare? The paradox of autonomy and dependence is present in intergenerational relations of support and conflict at various scales. It emerges, on the one hand, in the neoliberal injunction to be individually responsible for one’s own present and future wellbeing, an aspiration that is impossible to fulfill. On the other hand, it is expressed in the increasing recourse by younger active cohorts to the care work and assets of their older kin—in particular retirement pensions and a home. Finally, policy calls to transform the pension system oppose younger and older generations in the accountings of social security financial sustainability and question the fairness of existing public pension schemes.

Teacher Retirement Pension or 401(k) Alternative?

Teacher Retirement Pension or 401(k) Alternative?

A Study on Affecting Intention to Introduce Retirement Pension System: Focusing on Financial Factors of Small and Medium Enterprise

A Study on Affecting Intention to Introduce Retirement Pension System: Focusing on Financial Factors of Small and Medium Enterprise

Differences in Life Expectancy Between Self-Employed Workers and Paid Employees when Retirement Pensioners: Evidence from Spanish Social Security Records

The aim of this paper is to examine differences in life expectancy (LE) between self-employed (SE) and paid employee (PE) workers when they become retirement pensioners, looking at levels of pension income using administrative data from Spanish social security records. We draw on the Continuous Sample of Working Lives (CSWL) to quantify changes in total life expectancy at age 65 (LE65) among retired men over the longest possible period covered by this data source: 2005-2018. These changes are broken down by pension regime and initial pension income level for three periods. The literature presents mixed evidence, even for the same country-for Japan and Italy, for example-with some studies pointing to higher life expectancy for SE than for PE retirement pensioners while others argue the opposite. In Spain, LE65 is slightly higher for the SE than for PE workers when retirement pensioners. For 2005-2010, a gap in life expectancy of 0.23 years between SE and PE retirement pensioners is observed. This widens to 0.55 years for 2014-2018. A similar trend can be seen if pension income groups are considered. For 2005-2010, the gap in LE65 between pensioners in the lowest and highest income groups is 1.20 years. This widens over time and reaches 1.51 years for 2014-2018. Although these differences are relatively small, they are statistically significant. According to our research, the implications for policy on social security are evident: differences in life expectancy by socioeconomic status and pension regime should be taken into account for a variety of issues involving social security schemes. These include establishing the age of eligibility for retirement pensions and early access to benefits, computing the annuity factors used to determine initial retirement benefits and valuing the liabilities taken on for retirement pensioners.

Analysis of changes in the retirement insurance system in Poland in 2002-2018

The year 1999 marked the beginning of reforms in social insurance in Poland. Changes which were implemented then regarded mainly retirement insurance. Until the reform was introduced, the retirement insurance had operated under a pay-as-you-go system. However, political changes in Poland, as well as adverse demographic trends, led to ineffective functioning of the existing system of financing liabilities arising from retirement insurance. It was necessary to introduce changes that, above all, would allow for maintaining an appropriate level of retirement pension. The following article concentrates on one selected aspect of this insurance - Open Pension Funds (in Polish: Otwarte Fundusze Emerytalne; OFEs) and presents major changes occurring in 2002-2018, their reasons and effects. The analysis is mainly based on data from the Financial Supervision Authority and the Social Insurance Institution.

Re-examining female labor supply responses to the 1994 Australian pension reform

Many governments are aiming to extend working lives by raising the age at which people can claim retirement pensions. This makes it vital to understand how these policies affect retirement decisions. In this paper, I revisit the labor supply effects of a major Australian reform that increased women’s pension age from 60 to 65. Atalay and Barrett (2015) studied these effects using repeated household surveys and a differences-in-differences design in which male cohorts form the comparison group. They estimate that the reform increased female labor force participation by 12 percentage points. Using earlier data, I show that the parallel-trends assumption did not hold before the reform because of a strong female-specific trend in participation rates across the relevant cohorts. Accounting for this trend, the estimated effect on female participation falls by two-thirds and becomes statistically insignificant at conventional levels. This highlights the importance of carefully assessing and controlling for trends across cohorts when evaluating pension reforms, which are typically phased in across cohorts.

How did European retirees respond to the COVID-19 pandemic?

We investigate the role of retirement on the adoption of preventive behaviours and on mental health during the first wave of the pandemic. We address the endogeneity of the timing of retirement using variation in early retirement and old-age pension eligibility. We find that those who retired earlier responded to the pandemic by limiting their mobility more, and by adopting stricter preventive behaviours in public. These limitations affected the mental health of singles in retirement.

The minimum pension and its effect on the gender gap in retirement pensions in Spain

ABSTRACT The gender gap in pensions is greater than the gender gap in wages in the majority of countries in the European Union. Similarly, more women live on a minimum pension than do men. Therefore, the measures that are implemented for minimum benefits must be analysed from a gender perspective to avoid further increasing the gender gap in wages. This study analysed an unexplored aspect in both the academic and judicial spheres, namely, the regulation of the minimum pension in Spain after the 2011 reform and its effect on women’s pensions. The analysis highlights indirect sex discrimination in the aforementioned regulations. Therefore, modification measures are proposed to help reduce the gender gap in pensions.

Pensionistas con esperanza de vida reducida e incentivos fiscales del IRPF: Cobertura del riesgo de longevidad

El sector asegurador español solo ofrece rentas de supervivencia obtenidas con tablas de mortalidad de la población general. Así, los incentivos fiscales del IRPF para la contratación de rentas complementarias a la pensión pública de jubilación suponen un agravio comparativo para personas con esperanza de vida reducida, pues solo pueden beneficiarse de ellos a precios injustos. En España, como en otros muchos países, no se comercializan las denominadas enhanced annuities (rentas mejoradas), esto es, rentas que, además de considerar los factores de riesgo tradicionales de edad y sexo (en los países en los que este último está permitido), para su tarificación tienen en cuenta, en el momento de la contratación, aspectos relacionados con el estado de salud y estilo de vista de la persona a asegurar. A partir de estas consideraciones, el presente trabajo tiene por objeto determinar la estrategia óptima que, considerando las probabilidades de fallecimiento ajustadas a sus factores de riesgo y su fiscalidad, permite a un pensionista con esperanza de vida reducida transferir su riesgo de longevidad en el mercado español adquiriendo una renta complementaria. Además, los resultados obtenidos se comparan con los correspondientes a un rentista con esperanza de vida estándar y con los que obtendría el citado pensionista si pudiera suscribir una renta actuarialmente justa, es decir, una renta mejorada.

Employment Status and Health Literacy in Denmark: A Population-Based Study.

Objectives: Examining whether specific population groups who are not working and those who have an employment have the same health literacy level. Methods: Data were retrieved from a nationally representative cross-sectional study of the Danish population conducted with the health literacy questionnaire (HLS-EU-Q16) in 2016 and 2017. Socio-demographic characteristics were drawn from national registers. Odds ratio for the association between employment status and health literacy was estimated from logistic regression models, adjusted for socio-demographic characteristics. Probability weights were used to adjust for differences in responses. Results: Logistic regression analyses showed that receiving unemployment benefits, social assistance, employment and support allowance, retirement pension and sickness benefit were significantly associated with having inadequate health literacy compared to being employed in any industry. The highest odds ratio for inadequate health literacy was present for receiving unemployment benefit OR = 1.78 (95% CI: 1.23–2.56). Conclusion: Population groups not working and receiving economic public support have higher odds of inadequate health literacy competencies compared to those active in the labor force, considering age and socioeconomic factors. The result contributes to understanding health disparities in connection to occupational situation.

Management of Pension and Disability Expenses and their Share in the Polish Defense Budget

Purpose: The objective of this article is to identify and analyse social expenditure management at the Ministry of National Defense in 2014-2018. The share of pension and disability expenses in the Polish defense budget in 2014-2018 was subject to an in-depth analysis. Design/Methodology/Approach: The article will present the history of pensions in Poland. The next part focuses on the reforms of the pension system that took place after the political transformation. On the other hand, own research presents a financial analysis of retirement and disability pension expenditure. Findings: The result of the article is an analysis of pension expenditure in the budget of the Ministry of National Defense provided for as part of the defense expenditure of the Polish state. Practical Implications: The article may be the basis for considering the exclusion of this type of expenditure from the budget of the Ministry of National Defense and inclusion in the universal system. Originality/Value: The funds obtained in this way may constitute the actual Polish defense expenditure amounting to 2% of GDP.

Influence of Pillar 3 of Pension System on Retirement Pensions Level in Poland: Will Voluntary Part of System Enable Decent Life in Old Age?

Influence of Pillar 3 of Pension System on Retirement Pensions Level in Poland: Will Voluntary Part of System Enable Decent Life in Old Age?

Nudging freelance professionals to increase their retirement pension fund contributions

AbstractPeople do not save enough for retirement and this can have serious repercussions on their well-being. We tested an intervention in a large field study (N = 20,507) with the goal of nudging a population of freelance workers to save more for the future. First, we changed the default from the earlier contribution rate of 10% to a contribution rate of 20%, but left people free to choose how much they wanted to contribute. Second, those who reduced their contribution were reminded that they would receive a lower pension as a result. Third, we informed people about how much tax they would save as a result of their contribution. This nudging intervention proved to be a cost-effective, yet powerful way to remind people about the long-term implications of their savings decisions. It was also successful at counteracting the temptation to keep as much money as possible for present consumption while losing out on the long run. Overall, we were able to increase cash flow to the fund by more than eight million Euros (in addition to the roughly 50 million collected in the previous year), with an almost seven-fold increase in the number of people who chose to contribute more than the minimum.

Case Analysis and Implication of the Introduction of Default Options for Retirement Pension in Japan

Purpose: While the amount of reserve in retirement pension in Korea has been increasing rapidly, the rate of return is low due to fact that most of the corporate pension reserve is invested in financial products that guarantee the principal and interest. This study focuses on deriving implications for the introduction of domestic default options after investigating the default option system in Japan, which operates mainly under the contract-based governance structure. Research design, data, and methodology: We begin with examining the outline of the Japanese default option system, and the selection criteria and selection process for default option products. Next, after conducting the case studies on Aeon Group and Gunje, we investigate the supervision and participation protection aspects of the Japanese default option system. Results: We suggest that the principle and interest guarantee type is included in the default product requirements through labor-management consultation, and the number of products presented is limited to below an appropriate level to help participations'' selection. The principle and interest guarantee type is included in the default product requirements through labor-management consultation, and the number of products presented to help subscribers'' selection is limited to below an appropriate level. Implications: We draw the implication from the perspective of providing information on default option product selection requirements, setting the period and grace period, imposting a fiduciary duty to employers, and providing information on principal and interest guaranteed products.

Case Analysis and Implication of the Introduction of Default Options for Retirement Pension in Japan

Case Analysis and Implication of the Introduction of Default Options for Retirement Pension in Japan

Cost-Free LTC Model Incorporated into Private Pension Schemes.

Long-term care coverage is not integrated into an individual’s retirement strategy. It is an additional public health service that is not considered into private pension funds. Nevertheless, this coverage is not sufficient due to the problems of financial sustainability of the public pension systems. However, there are large sums in pension plans dedicated to paying retirement pensions that can be transformed into support for long-term care coverage. This paper develops a mechanism of pension transformation through the different mortality of the beneficiary when becoming a dependent beneficiary. This mechanism allows the beneficiary to convert their pension to LTC support at their own choice, without increasing the cost of the private pension scheme. The proposed model provides consistency in the pension that a retiree receives and adapts it to a retiree’s life expectancy: the retiree receives a higher pension when he/she needs it most.