{"title":"Pension benefit design: flexibility and the integration of insurance over the life cycle","authors":"A. Asher","doi":"10.4314/SAAJ.V7I1.24510","DOIUrl":null,"url":null,"abstract":"It is suggested that South African retirement schemes ought to be designed around the financial life cycle and the risks faced by the families of members at various stages of the cycle. This paper reviews what we know about the life cycle and the non-investment risks: principally death, disability, dismissal and divorce. Providing for death and disability within schemes would allow for an offset of these costs against that of retirement, for less in the way of underwriting and for economies of scope. It would also allow for the elimination of those statutory and private schemes that give partial cover for accidental causes of death and disability. The paper also criticises insurance arrangements that conflate the heterogeneous causes of disability. It then considers arguments for making scheme membership and various elements of design a legislative requirement. Against the common view, it is suggested that a relatively low level of saving should be required, but that life and disability cover ought to be compulsory as should annuitisation at retirement. Keywords : Policy; pension funds; collective action; life insurance; annuitisation; disability; retirement; social policy South African Acturial Journal Vol. 7 2007: pp. 73-115","PeriodicalId":40732,"journal":{"name":"South African Actuarial Journal","volume":null,"pages":null},"PeriodicalIF":0.1000,"publicationDate":"2007-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"South African Actuarial Journal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.4314/SAAJ.V7I1.24510","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 1
Abstract
It is suggested that South African retirement schemes ought to be designed around the financial life cycle and the risks faced by the families of members at various stages of the cycle. This paper reviews what we know about the life cycle and the non-investment risks: principally death, disability, dismissal and divorce. Providing for death and disability within schemes would allow for an offset of these costs against that of retirement, for less in the way of underwriting and for economies of scope. It would also allow for the elimination of those statutory and private schemes that give partial cover for accidental causes of death and disability. The paper also criticises insurance arrangements that conflate the heterogeneous causes of disability. It then considers arguments for making scheme membership and various elements of design a legislative requirement. Against the common view, it is suggested that a relatively low level of saving should be required, but that life and disability cover ought to be compulsory as should annuitisation at retirement. Keywords : Policy; pension funds; collective action; life insurance; annuitisation; disability; retirement; social policy South African Acturial Journal Vol. 7 2007: pp. 73-115
有人建议,南非的退休计划应该围绕财政生命周期和成员的家庭在周期的各个阶段所面临的风险来设计。本文回顾了我们所知道的生命周期和非投资风险:主要是死亡,残疾,解雇和离婚。在计划内提供死亡和伤残保险将使这些费用与退休费用相抵消,减少承保费用和范围经济。它还将允许取消那些为意外死亡和残疾原因提供部分保险的法定和私人计划。这篇论文还批评了将各种各样的残疾原因混为一谈的保险安排。然后,它考虑将计划成员资格和设计的各种要素作为立法要求的论点。与普遍观点相反,有人建议应该要求相对较低的储蓄水平,但人寿和残疾保险应该是强制性的,退休时也应该有年金。关键词:政策;养老基金;集体行动;人寿保险;annuitisation;残疾;退休;社会政策南非精算师杂志Vol. 7 2007: pp. 73-115