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Benchmark-driven investment for DC pension plans Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2024-02-28 Antoon Pelsser, Li Yang
We investigate whether a benchmark and non-constant risk aversion affect the probability density distribution of optimal wealth at retirement. We maximize the expected utility of the ratio of pension wealth at retirement to an inflation-indexed benchmark. Together with a threshold and a lower bound, we are able to generate closed-form solutions. We find that this non-constant risk aversion type of
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Managing the shortfall risk of target date funds by overfunding Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2024-01-10 Giovanni Barone Adesi, Eckhard Platen, Carlo Sala
Is it possible to achieve almost riskless, nonfluctuating investment payoffs in the long run, at a fraction of the traditional funding requirement, using equity investments? What is their shortfall risk? These questions are motivated by the need to increase yields, while limiting the variability of investment results. We show how to use contingent claims, denominated in units of a stock index, to achieve
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Two decades of Social Security claiming Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-12-12 Sita Nataraj Slavov
Twenty years ago, the adjustment to monthly Social Security benefits for early or delayed claiming was, on average, roughly actuarially fair, although some subsets of individuals could gain from delay. Since then, delaying claiming has become much more attractive thanks to three factors: a more generous delayed retirement credit, improvements in mortality, and historically low real interest rates.
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Optimal retirement with disability pensions Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-11-23 Hans Fehr, Adrian Fröhlich
This paper develops a general equilibrium life-cycle model with endogenous retirement that focuses on the interplay between old-age pensions (OAP) and disability pensions (DP) in Germany. Germany has introduced a phased-in increase of the normal retirement age from age 65 to 67 (Reform 2007) and closed off other routes to early OAP retirement. This reform was followed by a phased-in expansion of future
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Redistributive effects of pension reforms: who are the winners and losers? Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-11-03 Miguel Sánchez-Romero, Philip Schuster, Alexia Prskawetz
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
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Target date funds as asset market stabilizers: evidence from the pandemic Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-11-03 Jonathan A. Parker, Yang Sun
Target date funds (TDFs) provide retirement investors, many of whom are unsophisticated or inattentive, with age-appropriate exposures to different asset classes like stocks and bonds. To maintain exposures, TDFs trade actively against market returns, buying stock funds when the stock market does poorly, and selling when the market does well (Parker et al., 2023, Journal of Finance). This paper shows
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Toward an economic reformulation of public pension funding Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-11-03 Robert M. Costrell, Josh B. McGee
We propose an economic reformulation of contribution policy integrating: (1) formalization of sustainability as the steady-state contribution rate, incorporating both the expected return on risky assets and a low-risk discount rate for liabilities; (2) derivation of contribution adjustment policies required for convergence toward the target funded ratio and contribution rate; and (3) a stylized optimization
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Country-level, mandatory, self-financeable pension replacement rates in OECD countries Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-10-20 Rubén Castro
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
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Understanding demand for flexible pension payouts: evidence from the Netherlands Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-10-20 Rik Dillingh, Maria Zumbuehl
This study examines the interest in different pension payout schemes when full annuitization is the default. We focus on three possible pension payout schemes: a flat-rate annuity, a high/low annuity-based profile, and a partial lump sum at retirement with a lower flat-rate annuity after that. We make use of a vignette study and find substantial interest in each of the three payout schemes. Interest
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Can fiscal incentives to saving alleviate looming old-age poverty? Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-10-05 Joanna Tyrowicz, Krzysztof Makarski, Artur Rutkowski
We develop a general equilibrium overlapping generations framework with incompletely rational individuals to study old-age saving incentives. Such incentives are used worldwide to help achieve the high savings rate required to sustain sufficient consumption in old age. We show that they raise the welfare of financially illiterate individuals and those with a high degree of time inconsistency. They
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Pension knowledge in Chile and regional development characteristics Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-09-15 Alejandra Inzunza, Jose Ruiz
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
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Saving for retirement in Europe: the long-term risk-return tradeoff Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-09-14 Andrea Berardi, Claudio Tebaldi
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
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Automatic enrollment with a 12 percent default contribution rate Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-09-11 John Beshears, Ruofei Guo, David Laibson, Brigitte C. Madrian, James J. Choi
We study a retirement savings plan with a default contribution rate of 12 percent of income, which is much higher than previously studied defaults. Twenty-five percent of employees had not opted out of this default 12 months after hire; a literature review finds that the corresponding fraction in plans with lower defaults is approximately one-half. Because only contributions above 12 percent were matched
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Early pension withdrawals in Chile during the pandemic Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-08-22 Olga M. Fuentes, Olivia S. Mitchell, Félix Villatoro
At the onset of the Covid-19 crisis, and with one of the largest and best-funded defined contribution programs in Latin America, Chile held over USD $200 bn in assets (or more than 80% of GDP). Reacting to populist pressures during the pandemic, however, the Congress gave non-retired participants three separate opportunities to tap into their retirement accounts, leaving some 4.2 million participants
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Behavior of Canadian life annuity prices Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-06-21 Narat Charupat, Mark J. Kamstra
We examine the behavior of Canadian life annuity prices by measuring how quickly and fully they respond to changes in market interest rates. The price responses, though not immediate, start relatively quickly and become more complete over time. Over the whole sample period, the responses appear to be asymmetric – annuity providers generally raise prices faster when interest rates decline than reduce
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Experience of financial challenges, retirement concerns, and planning: evidence from representative samples of workers in 16 countries Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-06-19 Stefania Innocenti, Gordon L. Clark, Sarah McGill
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
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Trends in retirement and retirement income choices by TIAA participants: 2000–2018 Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-05-10 Jeffrey R. Brown, James M. Poterba, David P. Richardson
This paper documents trends over the last two decades in retirement behavior and retirement income choices of participants in TIAA, a large and mature defined contribution plan. From 2000 and 2018, the average age at which TIAA participants stopped contributing to their accounts, which is a lower bound on their retirement age, rose by 1.2 years for female and 2.0 years for male participants. There
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Older workers’ employment and Social Security spillovers through the second year of the COVID-19 pandemic Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-04-11 Gopi Shah Goda, Emilie Jackson, Lauren Hersch Nicholas, Sarah See Stith
The COVID-19 pandemic triggered a large and immediate drop in employment among U.S. workers, along with major expansions of unemployment insurance (UI) and work from home. We use Current Population Survey and Social Security application data to study employment among older adults and their participation in disability and retirement insurance programs through the second year of the pandemic. We find
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The prevalence and nature of COLAs in public sector retirement plans Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-04-11 Maria D. Fitzpatrick, Gopi Shah Goda
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
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Explaining fluctuations in the Thrift Savings Fund daily balance at U.S. treasury Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-03-24 Mark Skidmore, Camila Alvayay Torrejón, David Pare
This article examines the G-Fund, which is one of the five funds in the federal government employee retirement Thrift Savings Plan. The G-Fund is held as internal debt by the U.S. Department of Treasury. Our examination shows that the fund balance is exclusively composed of 1-day notes that are redeemed/reissued every business day, generating $55 trillion in annual debt reissuance. We also show that
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How did COVID-19 affect the labor force participation of older workers in the first year of the pandemic? Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-02-23 Owen F. Davis, Laura D. Quinby, Matthew S. Rutledge, Gal Wettstein
This paper uses the Current Population Survey to study older workers' transitions out of employment and into retirement during the first year of the pandemic. We find that, among workers ages 55 to 79, the likelihood of leaving employment over the course of a year rose by 6.7 percentage points, a 43-percent increase over baseline. Workers without a college degree, Asian–Americans, those whose jobs
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Are older workers capable of working longer? Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-02-13 Laura D. Quinby, Gal Wettstein
Disability-free life expectancy had been rising continuously in the United States until 2010, suggesting working longer as a solution for those financially unprepared for retirement. However, recent developments suggest improvements in working life expectancy have stalled, especially for minorities and those with less education. This paper uses data from the National Vital Statistics System, the American
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Three little words? The impact of social security terminology on knowledge and claiming intentions Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-02-02 Francisco Perez-Arce, Lila Rabinovich, Joanne Yoong, Laith Alattar
We study the impact of changing the existing terminology to describe the rules governing Social Security retirement benefits. We provided respondents from a nationally representative online panel with information pertinent to the decision of when to claim Social Security retirement benefits. The content of the information treatments was identical for all respondents, but some were randomly given an
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The evolution of financial literacy over time and its predictive power for financial outcomes: evidence from longitudinal data Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-01-13 Marco Angrisani, Jeremy Burke, Annamaria Lusardi, Gary Mottola
We administered the FINRA Foundation's National Financial Capability Study questionnaire to members of the RAND American Life Panel in 2012 and 2018. Using this unique, longitudinal data set, we investigate the evolution of financial literacy over time and shed light on the effect of financial knowledge on financial outcomes. Over a six-year observation period, financial literacy appears to be rather
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Stereotypes of older workers and perceived ageism in job ads: evidence from an experiment Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2023-01-05 Ian Burn, Daniel Firoozi, Daniel Ladd, David Neumark
We explore whether ageist stereotypes in job ads are detectable using machine-learning methods measuring the linguistic similarity of job-ad language to ageist stereotypes identified by industrial psychologists. We then conduct an experiment to evaluate whether this language is perceived as biased against older workers searching for jobs. We find that job-ad language classified by the machine-learning
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Partial de-annuitization of public pensions vs. retirement age differentiation: Which is best to account for longevity differences? Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-12-09 Vincent Vandenberghe
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
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Economic impacts of the COVID-19 crisis: evidence from credit and debt of older adults Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-11-09 Meta Brown, J. Michael Collins, Stephanie Moulton
This study documents the credit outcomes of older adults immediately before and after the onset of the COVID-19 pandemic in the United States. On average, older adults experienced larger reductions in total household debt relative to younger adults. However, there is significant heterogeneity, where older adults with higher incomes experienced the largest declines, and lower-income older adults experienced
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The effect of the Dutch financial assessment framework on the mortgage investments of pension funds Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-11-09 Yeorim Kim, Mauro Mastrogiacomo
We investigate the cause of the increase in mortgage investments by pension funds after the financial crisis. We show that, after the introduction of the new financial assessment framework in 2015, funds that experienced larger reductions in the funding ratio during the 2008–2012 crisis invested more in mortgages. We test the hypothesis that a past recovery mode has motivated pension funds to invest
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A simple approach to estimate long-term interest rates Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-10-20 Joost Driessen, Theo E. Nijman, Zorka Simon
We propose an easy to implement yield curve extrapolation method to determine long-term interest rates suitable for regulatory valuation. We empirically evaluate this approach for the German nominal bond market, by estimating the model on bonds with maturities up to 20 years and assessing the out-of-sample performance for bonds with maturities beyond 20 years. Even though observed long-term yields
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Trust in pension funds, or the importance of being financially sound Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-10-06 Hendrik P. van Dalen, Kène Henkens
Is the trust that participants have in their pension fund affected by its funding ratio (i.e., asset/liabilities ratio)? Based on survey, carried out in October 2021, among Dutch pension fund participants we link our survey data to the funding ratio of their pension fund as registered by the pension regulator. First, we show that the level of the funding ratio of their pension fund is positively associated
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How taxes impact the choice between an annuity and the lump sum at retirement Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-08-17 Monika Bütler, Alma Ramsden
We analyze how taxes affect the choice between a life-long annuity and a one-off lump sum payment, the so-called annuitization decision. Using administrative data from a large Swiss pension fund, we impute taxes for the lump sum and the life-long annuity option. We show that taxes can explain a significant part of the variation in annuity rates. Exploiting kinks in the tax schedule of the one-off lump
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Mislearning and (poor) performance of individual investors Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-08-11 Félix Villatoro, Olga Fuentes, Julio Riutort, Pamela Searle
We study individuals' incentives to make investment decisions. Using data from a large pension system in Chile we find that individuals who are active in managing their investments have, on average, poor performance. We provide robust evidence suggesting that learning plays an important part in this phenomenon. Indeed, individuals who have made successful investment decisions in the past go on to trade
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Caregiving subsidies and spousal early retirement intentions Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-07-29 Joan Costa-Font, Cristina Vilaplana-Prieto
Balancing caregiving duties and employment can be both financially and emotionally burdensome, especially when care is provided to a spouse at home. Caregiving subsidies can play a role in helping caregivers to cope with such duties. This paper demonstrates how providing financial respite for caregivers can influence individuals' decisions to retire early. We investigate the impact of a reform that
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The optimal cyclical design for a target benefit pension plan Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-07-01 Lv Chen, Danping Li, Yumin Wang, Xiaobai Zhu
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
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Influencing the choice of pension distribution at retirement Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-06-23 Robert L. Clark, Olivia S. Mitchell
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
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How would 401(k) ‘Rothification’ alter saving, retirement security, and inequality? Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-06-08 Vanya Horneff, Raimond Maurer, Olivia S. Mitchell
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
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Coping with demographic change: macroeconomic performance and welfare inequality effects of public pension reform Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-05-18 Willem Devriendt, Freddy Heylen, Arthur Jacobs
This paper evaluates alternative reforms of the public pension system in an overlapping generations model for an open economy facing demographic change. We make progress compared to existing literature on pension reform by modelling individuals with heterogeneous innate ability and endogenous human capital, and by putting (the reduction of) welfare inequality effects of reform at the centre. Frequently
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Reforms of an early retirement pathway in Germany and their labor market effects Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-05-13 Regina T. Riphahn, Rebecca Schrader
We study causal effects of two early retirement reforms. Reform 1 increased normal retirement age stepwise from 60 to 63. Simultaneously, it became possible to use early retirement with benefit discounts. Reform 2 increased the age of early retirement stepwise from 60 to 63. We investigate behavioral responses to the reforms using administrative data and difference-in-differences strategies. We find
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Does the actuarial adjustment for pension delay affect retirement and claiming decisions? Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-05-11 Devon Gorry, Kyung Min Lee, Sita Nataraj Slavov
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
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Public pensions and low-income dynamics in Canada Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-05-11 Mayssun El-Attar, Raquel Fonseca
This paper focuses on individuals over 50 and shows that considering persistence and low-income dynamics is essential for understanding poverty. We use administrative data for Canada from the Longitudinal and International Study of Adults. The paper shows that poverty for seniors is highly persistent and strongly depends on lifetime earnings. We show that beginning to receive a public pension implies
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Do smallholder farmers prefer commitment or flexibility in pension savings accounts? A randomised experiment of cocoa farmers in Ghana Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-04-29 Diana Kos, Robert Lensink
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
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Mandatory pension savings and long-run debt accumulation: evidence from Danish low-wage earners Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-04-29 Henrik Yde Andersen, Niels Lynggård Hansen, Andreas Kuchler
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
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Heterogeneity in longevity, redistribution, and pension reform Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-04-18 Julián Díaz-Saavedra
The gap in the life expectancy of the elderly across educational groups is high, and this will probably increase over the coming decades. In this article, we use a computable overlapping generations model economy to show that the long-term link between heterogeneity in longevity and education could translate into an implicit tax/subsidy on the expected lifetime benefits to lifetime payroll taxes ratio
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The impact of an employer match and automatic enrollment on the savings behavior of public-sector workers Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-03-04 Justin Falk, Nadia S. Karamcheva
We use administrative data on federal civilian workers' accounts in their employer-provided defined contribution plan, called the thrift savings plan (TSP), to provide new evidence on the effects of employer matching and defaults on workers' savings behavior. The empirical analysis relies on exogenous variation stemming from two natural experiments caused by policy changes to the TSP: the establishment
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Does pension information impact savings? Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-03-03 Najat El Mekkaoui, Bérangère Legendre
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
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Social security programs and retirement around the world: reforms and incentives Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-02-16 Keith Ambachtsheer
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Pension fund board governance and asset allocation: evidence from Switzerland Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2022-02-11 Nadège Bregnard, Carolina Salva
We study whether pension fund board governance relates to asset allocation. Pension funds with well-governed boards have greater international diversification, lower cash holdings, and, when pension funds are small, invest more in risky assets. In particular, pension fund boards that establish comprehensive investment policies invest more in equities, in foreign assets, and hold less cash. We argue
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Less is not more: 401(k) plan information and retirement planning choices Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-12-07 Eric Cardella, Charlene M. Kalenkoski, Michael Parent
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
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Introduction to special issue on institutional influences on retirement, health and well-being Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-11-22 David Knapp, Jinkook Lee
Countries make differing policy choices. They can serve as a scientific laboratory for drawing lessons on the policy paths to follow or to avoid and the consequences of those institutional choices on individuals at older ages. In this special issue we bring together six articles that evaluate the influence of institutions on retirement decisions, health and well-being of older adults using common data
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The consequences of claiming Social Security benefits at age 62 Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-10-18 Philip Armour, David Knapp
Delaying claiming of Social Security old-age benefits past the earliest eligibility age, age 62, raises the monthly benefit for a person's life. Despite arguments from both proponents and opponents of delayed claiming in academia and public discourse, little is known about whether claiming decisions lead to substantively different outcomes. We compare differences in outcomes between age-62 claimants
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Disclosure versus recognition: the value relevance of pensions Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-10-14 Luca Larcher
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
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Promoting public retirement savings accounts during tax filing: evidence from field experiments Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-10-05 Stephen Roll, Sam Bufe, Olga Kondratjeva, Michal Grinstein-Weiss
In 2015, the U.S. Treasury Department launched myRA, a no-fee retirement account designed for people who lacked employer-sponsored retirement options. We report findings from two behavioral field experiments intended to motivate interest in using the tax refund to open and fund myRAs directly through the tax-filing process. These experiments, administered to more than 100,000 low-income tax filers
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Towards Improved Retirement Savings Outcomes for Women By OECD, Paris, OECD. 2021 Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-09-28 Elsa Fornero
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The transition to NDC in Italy: assessing distributive and financial effects Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-09-23 Carlo Mazzaferro
Moving from a Defined Benefit (DB) to a Notional Defined Contribution (NDC) pension formula creates significant re-distributive effects. We estimate the amount and the intensity of these effects in the case of the Italian transition to NDC, which began in 1995. Based on administrative data of the main Italian pension scheme (FPLD), we study the evolution of yearly inequality within old-age pension
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Trust, financial literacy, and financial market participation Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-09-10 Jill E. Fisch, Jason S. Seligman
Willingness to participate in financial markets is important for financial well-being, including the accumulation of retirement savings through self-directed pension programs. We consider the roles of two key factors, trust and financial literacy in financial market participation. We find both are strongly related to participation. Although trust is more uniformly correlated with increases in financial
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Migration, work, and retirement: the case of Mexican-origin populations Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-09-09 Emma Aguila, Zeewan Lee, Rebeca Wong
Mexico and the United States both face rapid population aging as well as older populations with high poverty rates. Among the most vulnerable populations of retirement age in either nation are Mexican immigrants to the United States. This work uses data from the U.S. Health and Retirement Study and the Mexican Health and Aging Study to assess retirement decisions among persons born in Mexico and working
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Intertemporal and intratemporal consumption smoothing at retirement: micro evidence from detailed spending and time use data Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-09-06 Jim Been, Kees Goudswaard
Using detailed spending and time use data from the Netherlands, this paper analyzes the causal effect of retirement on spending and time use decisions. Both total consumption and disaggregated consumption categories are considered. We do not find empirical evidence for drops in households' total non-durable spending at retirement. Our estimates suggest increases in spending at retirement on goods that
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Glide paths for a retirement plan with deferred annuities Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-08-31 Chul Jang, Andrew Clare, Iqbal Owadally
We construct investment glide paths for a retirement plan using both traditional asset classes and deferred annuities (DAs). The glide paths are approximated by averaging the asset proportions of stochastic optimal investment solutions. The objective function consists of power utility in terms of secured retirement income from purchased DAs, as well as a bequest that can be withdrawn before retirement
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Wealth After WorkEdited By William G. Gale, J. Mark Iwry, and David C. John Journal of Pension Economics & Finance (IF 2.259) Pub Date : 2021-07-07 John Sabelhaus