Social Pension Research Articles

Small cash transfers to older people: do they reduce poverty?

Abstract The literature has shown that, in developing countries, large cash transfers to older people improve the wellbeing of the recipients and their families. While social pensions have recently emerged in East Asia to deliver small cash benefits to older people, there is little consistent evidence of their effects. We examine the effects of the Basic Pension Scheme, a social pension in South Korea, on income and consumption poverty among older adults. We apply a difference-in-differences event study design and other complementary approaches to data covering the full period of program development from 2006 to 2021. The results show that the social pension decreases income poverty but not consumption poverty. While this study analysed the best data currently available, using better-quality data in future research would enable more robust analysis. Further research is also warranted to find how to improve the effectiveness of a non-contributory pension programme as a tool for reducing income and consumption poverty among older adults.

OLG Model Analysis of Delayed Retirement and Social Pension Effects on Family-Based Elderly Care in China

Driven by the traditional concept of “Raising Children to Ensure Old-age Security”, China’s elderly care system has long relied on a family-centered approach, with intergenerational financial transfers (IFTs) serving as a major source of income for the elderly. However, as China’s population ages, the government’s plan to implement delayed retirement from 2025, along with pension reforms, is expected to reshape family-based eldercare and intergenerational financial dynamics. This paper employs an Overlapping Generation (OLG) model, grounded in unified growth theory, which incorporates a delayed retirement policy under the constraint of pension fund balance to examine the impact of adjusting the pension contribution rates (PCRs) and raising retirement age (RA) on IFT rates. The research findings indicate a negative correlation between RA, PCR, and IFT. Both policies have the potential to alleviate the burden on family-based eldercare. The integrated implementation of these two policies not only creates room for a phased reduction in pension contribution rates but also enables the effective utilization of senior workers’ expertise and experience.

New urbanization; Urban resilience; Coupled coordination model; Huaihe River Basin

Contemporary China's pension system revolves around the allocation and acquisition of pension resources, relying on the enforcement of political power as a guarantee, and is closely integrated with the formulation of laws to form a normative system. This system is composed of a variety of specific systems, and the sub-systems are interconnected and complementary in function, forming a comprehensive pension security network. In the process of promoting the modernization of the national governance system and governance capacity, the pension field needs to achieve a benign governance model, which requires a complete pension system as a support. Under the framework of the existing political system and constitutional system, the basic governance logic remains unchanged. To further promote the development of the pension system, the key lies in optimizing the pension legal system and establishing an effective coordination mechanism between laws and systems. Specifically, it is necessary to start from the following aspects: first, reconstruct the pension legal system with a coordinated and development approach, enhance the fairness of the pension legal system on the basis of objectively analyzing the social situation, and ensure the sustainability of social pension security; second, optimize the pension legal system from the perspective of national strategic layout, including improving the form of family pension responsibility and accelerating the legalization of social pension security; finally, strengthen the development of pension laws by giving full play to the leading role of the National People's Congress in legislation and improving the review mechanism of administrative normative documents. Only in this way can we form a modern system to deal with the issue of elderly care under the increasingly severe aging situation.

Can rural elderly groups be supported by increasing the pension contribution rate?

As a typical East Asian country transitioning from a production-based social insurance system to a modern free social insurance system, South Korea has set a precedent for other Asian countries. This study adopts data from 2006, 2010, and 2012 Korean Longitudinal Study of Aging (KLoSA) and uses a fixed effect analysis of the quasi-natural experiment to conclude that the increase in the Korean pension contribution rate has a limited negative impact on social security participation. The degree of filial piety of children, including the financial support of those children, rather than the number of children, affects the participation of the elderly in social security insurance. Thus, an alternative relationship between family pensions and social pensions presents itself. This paper discusses the mechanism that factors influence the willingness to participate in pension insurance with reduced replacement rates in an extended family of a multigenerational population. After systematically delineating the background of South Korea’s welfare system, this paper compares the similarities between China and South Korea in this regard and proposes that China and other East and Southeast Asian countries can learn from South Korea’s example.

Analysis of Optimizing the Allocation of Chinese Family Pension Financial Assets

In this era of national aging, social pension insurance can no longer meet the accelerated aging rate. According to statistics, by the end of 2021, the number of elderly people aged 60 and above in China had reached 267 million, accounting for 18 9% of the total population. In 2021, the number of elderly people aged 60 and above in China had reached 267 million, accounting for 18.9% of the total population. It is expected that by 2035, the elderly population will reach 300 million, accounting for 20% of the total population. In 2035, the elderly population will reach 300 million, accounting for 20% of the national population. Due to outdated concepts, the older generation believes that storing money in banks is not a good idea. In order to solve this problem, the country has promulgated the "Personal Pension Implementation Law", which is a type of pension insurance that individuals bear. Due to outdated concepts, the older generation believes that storing money in banks through real estate is safe and lacks correct financial management views. Therefore, the development of pension finance is difficult to implement, especially the understanding of that financial knowledge is needed for the allocation of pension products. To solve the development problem of elderly care finance, it is necessary to first improve the financial concepts of the old so that they can understand the correct financial concepts. Therefore, we will explore the understanding of financial concepts and elderly care allocation among the elderly in China and demonstrate it through data. Therefore, we will explore the understanding of financial concepts and elderly care allocation among the elderly in China and demonstrate it through data. Then, we will combine the theories of some financial scholars to conduct research, hoping to discover the problems of elderly care asset allocation in China through research and propose some of our own opinions.

Are children and pension substitutes? Evidence from the new rural pension scheme in China

ABSTRACT The study examines whether children, widely recognized as an important source of old-age security in many societies, reduce people’s demand for a social pension programme in rural China – the New Rural Pension Scheme (NRPS). OLS results suggest that having one more child will lower the NRPS participation rate by 3.0 percentage points and the effect of an additional son is larger than the effect of an additional daughter. However, using fines on unauthorized births under the One Child Policy in China as the instrument of children quantity, I find that the number of children has no causal effect on NRPS participation. Heterogeneity analysis shows that, when all children are adults, the number of children will increase the annual NRPS contribution. These findings suggest that old-age support based on family networks does not necessarily impede the development of formal pension programmes.

Социальное обеспечение пенсионеров в Китае: современность и перспектива

Pension systems across different states have evolved under the influence of national characteristics and traditions. Achieving complete universality of social institutions in all countries is impractical; instead, it is feasible to develop specific schemes for their organization. China is no exception in this regard. Currently, there is a need for the improvement of state’s policy related to pension funds to enhance the sustainability of the social payment system. In this paper, based on the conducted SWOT analysis, certain measures are proposed aimed at differentiating the interests of all beneficiaries of social pensions in China – the government, enterprises and people. The formulation of a number of policy recommendations aimed at the sustainable development of China’s social pension system constitutes the novelty of the study and lays the foundation for further scientific developments in this direction.

Strengthening Family Bonds and Promoting Rural Development: The Impact of Universal Social Pensions in Tanzania

Tanzania is undergoing demographic changes with an increasing number of elderly individuals, the majority of whom live in rural areas and face various social and economic challenges. In recent decades, international social policy has praised social pensions as an effective tool for addressing poverty among the elderly. This article explores how universal social pensions can strengthen family relationships and promote rural development through examples of family solidarity in rural areas of Tanzania. The study analyzes 2012 data from a descriptive cross-sectional survey involving over 900 elderly individuals aged 60 and above in two rural districts in the Mwanza region. This analysis also incorporates findings from the 2019 SAUT Survey, which covered three regions in Tanzania: Arusha, Mtwara, and Mwanza. The results indicate that the family structures in which elderly individuals live exhibit strong intergenerational solidarity. Income from universal social pensions has proven significant in reducing poverty and inequality, as well as enhancing health, nutrition, agriculture, and local markets, all of which contribute to rural development.

A Informal Sector Self-Employed Workers’ Old Age Pension Scheme in Retail Sector in Zimbabwe

The high incidence of informality in Zimbabwe implies that a large proportion of the adult population does not have access to contributory pension schemes during their working lives, rendering them ineligible for old-age pensions. The primary goal of this research is to develop a pragmatic informal retail sector noncontributory old-age pension scheme in Zimbabwe. The study drew empirical evidence from a comprehensive countrywide study using mixed-methods research. The study concluded that several factors, including the respondents' demographic characteristics, are important considerations in developing an effective non-contributory old-age informal sector pension scheme. Based on the study's findings, the study proposes alternative non-contributory old-age informal sector pension schemes, such as financing the non-contributory old-age social pension, determining the monthly amount of a non-contributory old-age pension, and gradually covering a non-contributory old-age pension gap. The study recommends the introduction of a non-contributory informal sector retirement pension fully funded by the government. Keywords: retail informal sector old-age pension scheme; social security; informal sector; Zimbabwe.

Crowding in or Out？National Public Pension, Inter-Generational Contract, and Family Support to Empty-Nest Older Parents in Rural China

ABSTRACT Evidence to date has been inconclusive on the effects of public pension on family support to older adults, and the underlying mechanism behind such effects remains unclear. This study examines the effects of the New Rural Social Pension Scheme on family support to empty-nest older parents in rural China, where family care is traditionally favored for older adults. Using data from the China Longitudinal Aging Social Survey, the findings reveal that pension receipt promotes bidirectional financial transfers and intimate relationships between generations, thus increasing (or crowding in) children’s financial and care support to their empty-nest parents. On the other hand, receiving pensions may discourage parental care support to children and partially decrease (or crowd out) children’s financial and care support. This crowding-out effect, however, is limited and thus insufficient for counteracting the crowding-in effects from other pathways. Overall, these findings indicate that national welfare, such as pensions, can encourage family support through inter-generational contracts and intimacy, strengthening familial bonds and facilitating mutual assistance within families. For policy implications, government should prioritize improving benefit levels of public pensions to harness the caregiving potential of families and providing essential services that assist families in addressing care burdens.

Current and Projected Mortality and Hospitalization Rates Associated With Conditional Cash Transfer, Social Pension, and Primary Health Care Programs in Brazil, 2000-2030

The health outcomes of increased poverty and inequalities in low- and middle-income countries (LMICs) have been substantially amplified as a consequence of converging multiple crises. Brazil has some of the world's largest conditional cash transfer (Programa Bolsa Família [PBF]), social pension (Beneficio de Prestacão Continuada [BPC]), and primary health care (Estratégia de Saúde da Família [ESF]) programs that could act as mitigating interventions during the current polycrisis era of increasing poverty, slow or contracting economic growth, and conflicts. To evaluate the combined association of the Brazilian conditional cash transfer, social pension, and primary health care programs with the reduction of morbidity and mortality over the last 2 decades and forecast their potential mitigation of the current global polycrisis and beyond. This cohort study used a longitudinal ecological design with multivariable negative binomial regression models (adjusted for relevant socioeconomic, demographic, and health care variables) integrating the retrospective analysis from 2000 to 2019, with dynamic microsimulation models to forecast potential child mortality scenarios up to 2030. Participants included a cohort of 2548 Brazilian municipalities from 2004 to 2019, projected from 2020 to 2030. Data analysis was performed from September 2022 to February 2023. PBF coverage of the target population (those who were poorest) was categorized into 4 levels: low (0%-29.9%), intermediate (30.0%-69.9%), high (70.0%-99.9%), and consolidated (≥100%). ESF coverage was categorized as null (0), low (0.1%-29.9%), intermediate (30.0%-69.9%), and consolidated (70.0%-100%). BPC coverage was categorized by terciles. Age-standardized, all-cause mortality and hospitalization rates calculated for the entire population and by age group (<5 years, 5-29 years, 30-69 years, and ≥70 years). Among the 2548 Brazilian municipalities studied from 2004 to 2019, the mean (SD) age-standardized mortality rate decreased by 16.64% (from 6.73 [1.14] to 5.61 [0.94] deaths per 1000 population). Consolidated coverages of social welfare programs studied were all associated with reductions in overall mortality rates (PBF: rate ratio [RR], 0.95 [95% CI, 0.94-0.96]; ESF: RR, 0.93 [95% CI, 0.93-0.94]; BPC: RR, 0.91 [95% CI, 0.91-0.92]), having all together prevented an estimated 1 462 626 (95% CI, 1 332 128-1 596 924) deaths over the period 2004 to 2019. The results were higher on mortality for the group younger than age 5 years (PBF: RR, 0.87 [95% CI, 0.85-0.90]; ESF: RR, 0.89 [95% CI, 0.87-0.93]; BPC: RR, 0.84 [95% CI, 0.82-0.86]), on mortality for the group aged 70 years and older, and on hospitalizations. Considering a shorter scenario of economic crisis, a mitigation strategy that will increase the coverage of PBF, BPC, and ESF to proportionally cover the newly poor and at-risk individuals was projected to avert 1 305 359 (95% CI, 1 163 659-1 449 256) deaths and 6 593 224 (95% CI, 5 534 591-7 651 327) hospitalizations up to 2030, compared with fiscal austerity scenarios that would reduce the coverage of these interventions. This cohort study's results suggest that combined expansion of conditional cash transfers, social pensions, and primary health care should be considered a viable strategy to mitigate the adverse health outcomes of the current global polycrisis in LMICs, whereas the implementation of fiscal austerity measures could result in large numbers of preventable deaths.

Social pension insurance and household risky asset investment: Evidence from China

Using the data from the 2013, 2015, and 2017 waves of the China Household Finance Survey, this paper explores the impact of participation in social pension insurance on household risky asset investment with the time-varying difference-in-difference model. The research findings indicate that, in urban areas, insured households are 2.3% more likely to invest in risky assets compared to uninsured households, and the share invested in risky assets is 0.8% higher. This positive effect is more pronounced for households with a higher level of risk preference. At the same time, there is no significant difference in the probability or proportion of risky assets allocation between insured and uninsured households in rural areas. These findings have important policy implications. When the government reforms the social pension insurance system or allocates public resources in the future, they can consider gradually breaking the dual urban-rural structure in the pension insurance system to alleviate concerns among rural households regarding uncertainties.

A Scoping Review of Income Support Programs Offered to Older Adults Living in South Asian Countries between 2000 and 2021

Income support programs (ISPs) are important social policy measures to reduce the risk of poverty among older adults. Over the years, developing countries including South Asian countries have introduced various ISPs to support the older population. This scoping review will provide information on ISPs for older adults in South Asia and will map the evidence available on the impact of these programs. This scoping review uses the Joanna Briggs Institute’s (JBI) methodology. Older adults living in South Asia were included, and ISPs were considered as the “concept.” Eight electronic databases and organizational/governmental websites were searched for English language publications from January 2000 to May 2021. Four authors independently screened and extracted the data and analyzed it by descriptive statistics. A total of 115 studies provided information on ISPs for older adults and 25 on the impact of these programs. The identified studies covered all types of ISPs; however, government-sponsored or pillar 0 (ISP classification) programs were the most common. They also covered a vast spectrum of all types of study designs. The most common schemes are social pensions that work towards sustainable development goals (Goal 1.3) of social protection for all. Future research should focus on studying the impact of ISPs and expanding the ISPs for older adults in low-coverage countries.

The effect of social pension on health-related quality of life of the rural older people: a panel study from China

BackgroundSocial pensions, social assistance systems for older people in rural areas, have been put into place in many nations and have positively impacted health. The long-term health consequences of social pension programs in China are uncertain. The aim of this study is to evaluate the long-term health consequences of the new rural social pension (NRSP) for the rural older people in China.MethodsBased on the 2011 and 2018 China Health and Retirement Longitudinal Study, we compared the scores on eight Health-Related Quality of Life (HRQoL) subscales of the rural older people before and after participation in the NRSP. The propensity score matching and difference-in-difference methods were used in data analysis. We also conducted a heterogeneity analysis for subgroups with different characteristics and pension enrolment times.ResultsThe NRSP significantly enhanced scores on physical functioning, role-physical, and self-rated mental health of old rural participants by 1.90 (p < 0.01), 2.05 (p < 0.01), and 2.93 (p < 0.05), respectively. After excluding newly enrolled individuals, the beneficial health effects of the NRSP remained significant. There were no significant changes due to NRSP in the other five scores on the HRQoL subscale of the rural older people. The NRSP had more health benefits for older people in underdeveloped areas without formal schooling.ConclusionsThe NRSP reduced health disparities and had long-term benefits on the physical and mental health of the rural older people. We suggest continuously expanding the NRSP throughout rural China and further improving the social support system to enhance the overall quality of life of the rural older people. Comparable social pension programs aimed at underprivileged groups could also be conducted in other low- or middle-income nations.

Institutional Pension Insurance in Sustainable Development of Urban–Rural Intergenerational Support

Parental downward support plays an important role in urban and rural sustainable development. It is of great significance to study parental downward transfers and their motivation. However, there is no consensus on the motivation behind parental downward transfers in China. This study examines the timing and monetary impacts of social pensions on parental downward transfers and assesses the motivations behind them. We found that pension insurance encouraged rural parents to provide time and monetary support to their children. Unlike rural parents, pension insurance increased the monetary support of urban parents but inhibited their time support. Because of the higher income level of urban parents and the better organization of the domestic service market, parents have the motivation and conditions to reduce their time support and increase monetary support. Our findings highlight the importance of parental downward transfers in urban and rural sustainable development.

The impact of green and low carbon agricultural production on farmers’ income in minority areas: a case study of Y Town, Zhijin County, Guizhou Province

Developing green and low-carbon agriculture is an important and effective way to promote farmers’ income growth. Given the country’s “dual carbon” goal, the study of the impact of green and low-carbon agriculture on the income of farmers in ethnic minority areas is crucial for China to achieve the goals of socialist modernization and common prosperity. Taking Y Town, Zhijin County, Guizhou Province as an example, this paper uses the OLS regression method to empirically study the impact of green and low-carbon agricultural production methods on the income of farmers in ethnic minority mountainous agricultural areas based on the field survey data of 881 farmers. The regression results indicate that there is a positive correlation between green and low-carbon agricultural production and the household income levels of farmers; adopting green and low-carbon agricultural production technologies can effectively promote the growth of farmers’ household income. In addition, education level, health status, and the new rural social pension insurance have all had a significant effect on the income of rural households, however, due to the difficulty in establishing trust relationships, agricultural service outsourcing has reduced the household income level of farmers. As an example, the land transfer behavior in Y Town has no significant effect on increasing farmers’ incomes. Finally, it is recommended to increase fiscal and financial support as well as effectively enhancing farmers’ policy awareness and perception of green and low-carbon agricultural production technologies by improving farmers’ general trust and institutional trust by strengthening farmers’ agricultural education and skills training while cultivating technology-based farming. At the same time, it is necessary to break the geographical restrictions on land transfer scale and achieve moderate-scale land management while promoting the use and adoption of green and low-carbon agricultural production technologies, thereby improving agricultural production efficiency and product quality, and increasing the sustainable growth of farmers’ income. The main contribution of this study is to expand the research scope of green and low-carbon agriculture to ethnic minorities and mountainous agricultural areas.

Influence of social pension on well‐being and health of the rural elderly: the case of South Korea

This study examines whether a social pension for the elderly population affects the well‐being and health of older adults in rural areas and whether pensions are more effective in rural areas than in urban areas. Using data from the Korean Longitudinal Study of Ageing, we exploit a difference‐in‐difference specification that compares changes in well‐being and health in rural areas for those who are 65 or older relative to the younger population before and after a pension reform. We also consider a triple‐difference specification to investigate the rural–urban difference. The results reveal that the expansion of the social pension significantly improved cognitive function and alleviated depressive symptoms among the rural elderly, but it had little impact on well‐being or other health measures such as subjective health status. We also find that this impact has been more effective in rural than in urban areas. Our findings suggest that social pensions can be crucial in enhancing cognitive functioning and mental health for rural elderly individuals and emphasise the effectiveness of pensions for rural elderly populations.

The effects of social pensions on nutrition-related health outcomes of the poor: Quasi-experimental evidence from Peru.

This paper exploits the discontinuity around a welfare index of eligibility to assess the impact of Peru's social pension program Pension 65 on nutrition-related health outcomes among elderly poor individuals. Overall, we find evidence of how a relatively inexpensive program can produce improvements in anemia and nutrition-related mortality risk markers. The effects appear to be driven by plausible underlying mechanisms, including via improved nutritional quality as well as greater food expenditures and healthcare utilization. These positive effects are only modestly countered by tentative signs of an increased obesity risk among women in the short term (<2years), but not beyond this term. As the program evolves further, policymakers need to confront the challenge of continuing to ensure the health benefits in terms of reducing nutritional deficits while avoiding potential undesirable side effects in terms of over-nutrition in Peru. The findings may serve to highlight the wider benefits of similar pension policies for the poor also in other middle income countries, well beyond the immediate economic welfare effects that the policies have primarily been designed for.

Research on the strengthening of the leading role of the government in urban social pension institutions in Hebei Province

In 1999, China enters the aging society as a whole. How to deal with the aging crisis of Hebei Provincial government is facing a severe test. In recent years, the number of elderly people in the province has continued to rise, and by the end of 2022, the proportion of elderly people over 60 years old has reached 21.01%, and the pressure on social pension has been increasing. On the one hand, in today's era, the family structure is generally small, young people work hard, the change of family mode has impacted the traditional way of providing for the elderly, and it is difficult to meet the growing and diversified needs of the elderly. On the other hand, the concept of old-age care has changed, and the development of The Times has given the elderly more choices to enjoy their later life. Based on this, institutional pension plays an irreplaceable role as an important way of providing for the elderly, and the way of providing for the elderly is no longer just fixed in the traditional home pension. By studying the leading role of the government in urban social pension institutions in Hebei province, this paper finds some problems and explores the causes of the problems, and puts forward suggestions on how to strengthen the leading role of the government in urban social pension institutions in Hebei Province. It is not only of great significance to the construction of a service-oriented and responsible government in Hebei Province, but also conducive to improving the recognition of institutional elderly care, improving the quality of life of the elderly in Hebei Province, and enhancing the sense of happiness and gain of the elderly.

Do older adults with disability face home care poverty? Evidence from China

ABSTRACT Home care poverty is the inability of older people to access adequate home care services and their unmet needs for home care. With the increasing number of older adults (60 years old and above) with disability in China, the Chinese government pays more and more attention to home care. In this case, it is of great significance to explore whether older adults with the disability face home care poverty and its influencing factors. The Chinese Longitudinal Healthy Longevity Survey (CLHLS) data in 2018 were utilized. SPSS 22.0 was used as a data analysis tool to conduct descriptive statistics and multiple logistic regression analysis on the sample (n = 1932). The study found that in 2018, 48.0% of older adults with disability faced home care poverty. Multiple logistic regression results showed that degree of disability, age, rural and non-eastern regions, income poverty, family caregiver, and reluctant caregivers were positive factors that increased the risk of home care poverty in disabled older adults (p < .05). But care duration, care expenditure, social pensions insurance, community daily life care and community medical services are the positive factors to eliminate the home care poverty for older adults with disability (p < .05). In order to solve the problem of home care poverty of older adults with disability, based on the research conclusions, the study proposed to establish a long-term care insurance system, formulate supportive policies for family caregivers or their families, and establish a wide variety of community care services.