Pub Date : 2021-07-02DOI: 10.1017/s1474747221000299
Amparo Nagore García, Arthur van Soest
We examine the effect of the partner allowance (PA) in the Dutch pension system on the retirement decisions of couples using administrative data. PA was paid to people who receive the public old-age pension with a partner younger than the state pension age (SPA) and with a low own income. PA worked as a financial incentive to retire earlier, especially for the younger partners. As of 1 April 2015, new old-age pensioners are no longer entitled to this allowance. We estimate the effect of this reform on the retirement behaviour of each spouse. To account for the fact that at the same time, another reform essentially put an end to generous early retirement arrangements, we compare singles and couples. We conclude that PA substantially increased female younger partners' probabilities to exit from part-time employment into retirement close to the older partner's SPA. On the other hand, there is no evidence that male younger partners (either full-time or part-time workers) responded to the PA reform. In addition, PA increased male older partners’ probabilities to retire in the years before reaching their SPA.
{"title":"How does an allowance for a non-working younger partner affect the retirement behaviour of couples?","authors":"Amparo Nagore García, Arthur van Soest","doi":"10.1017/s1474747221000299","DOIUrl":"https://doi.org/10.1017/s1474747221000299","url":null,"abstract":"<p>We examine the effect of the partner allowance (PA) in the Dutch pension system on the retirement decisions of couples using administrative data. PA was paid to people who receive the public old-age pension with a partner younger than the state pension age (SPA) and with a low own income. PA worked as a financial incentive to retire earlier, especially for the younger partners. As of 1 April 2015, new old-age pensioners are no longer entitled to this allowance. We estimate the effect of this reform on the retirement behaviour of each spouse. To account for the fact that at the same time, another reform essentially put an end to generous early retirement arrangements, we compare singles and couples. We conclude that PA substantially increased female younger partners' probabilities to exit from part-time employment into retirement close to the older partner's SPA. On the other hand, there is no evidence that male younger partners (either full-time or part-time workers) responded to the PA reform. In addition, PA increased male older partners’ probabilities to retire in the years before reaching their SPA.</p>","PeriodicalId":46635,"journal":{"name":"Journal of Pension Economics & Finance","volume":"110 2","pages":""},"PeriodicalIF":1.2,"publicationDate":"2021-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138519074","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-01Epub Date: 2020-01-14DOI: 10.1017/s1474747219000404
Raimond Maurer, Olivia S Mitchell
We have designed and implemented an experimental module in the 2014 Health and Retirement Study (HRS) to measure older persons' willingness to defer claiming of Social Security benefits. Under the current system' status quo where delaying claiming boosts eventual benefits, we show that 46% of the respondents would delay claiming and work longer. If respondents were instead offered an actuarially fair lump sum payment instead of higher lifelong benefits, about 56% indicate they would delay claiming. Without a work requirement, the average amount needed to induce delayed claiming is only $60,400, while when part-time work is stipulated, the amount is slightly higher, $66,700. This small difference implies a low utility value of leisure foregone, of under 20% of average household income.
{"title":"Older Peoples' Willingness to Delay Social Security Claiming.","authors":"Raimond Maurer, Olivia S Mitchell","doi":"10.1017/s1474747219000404","DOIUrl":"https://doi.org/10.1017/s1474747219000404","url":null,"abstract":"<p><p>We have designed and implemented an experimental module in the 2014 Health and Retirement Study (HRS) to measure older persons' willingness to defer claiming of Social Security benefits. Under the current system' <i>status quo</i> where delaying claiming boosts eventual benefits, we show that 46% of the respondents would delay claiming and work longer. If respondents were instead offered an actuarially fair <i>lump sum</i> payment instead of higher lifelong benefits, about 56% indicate they would delay claiming. Without a work requirement, the average amount needed to induce delayed claiming is only $60,400, while when part-time work is stipulated, the amount is slightly higher, $66,700. This small difference implies a low utility value of leisure foregone, of under 20% of average household income.</p>","PeriodicalId":46635,"journal":{"name":"Journal of Pension Economics & Finance","volume":"20 3","pages":"410-425"},"PeriodicalIF":1.2,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/s1474747219000404","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"40312083","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-01Epub Date: 2020-02-11DOI: 10.1017/S1474747220000025
Péter Hudomiet, Michael Hurd, Andrew Parker, Susann Rohwedder
Along with data about actual, desired and anticipated job characteristics, this paper uses a novel data element, the subjective conditional probability of working at age 70, to estimate the causal effects of job characteristics on retirement in the U.S. Having flexible work hours is the most consistent predictor of retirement preferences and expectations: if all current workers had flexible hours, the fraction working at age 70 would be 0.322, but it would be just 0.172 if none had this option. Job stress, physical and cognitive job demands, the option to telecommute, and commuting times were additional predictors of retirement expectations.
{"title":"The Effects of Job Characteristics on Retirement.","authors":"Péter Hudomiet, Michael Hurd, Andrew Parker, Susann Rohwedder","doi":"10.1017/S1474747220000025","DOIUrl":"https://doi.org/10.1017/S1474747220000025","url":null,"abstract":"<p><p>Along with data about actual, desired and anticipated job characteristics, this paper uses a novel data element, the subjective conditional probability of working at age 70, to estimate the causal effects of job characteristics on retirement in the U.S. Having flexible work hours is the most consistent predictor of retirement preferences and expectations: if all current workers had flexible hours, the fraction working at age 70 would be 0.322, but it would be just 0.172 if none had this option. Job stress, physical and cognitive job demands, the option to telecommute, and commuting times were additional predictors of retirement expectations.</p>","PeriodicalId":46635,"journal":{"name":"Journal of Pension Economics & Finance","volume":"20 SI3","pages":"357-373"},"PeriodicalIF":1.2,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1474747220000025","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"39334058","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-21DOI: 10.1017/S1474747221000287
Shawn Ni, M. Podgursky, Xiqian Wang
Abstract Many states enhanced benefits in teacher retirement plans during the 1990s. This paper examines the school staffing effects of one such enhancement in a major urban school district with mostly high poverty schools. Pension rule changes in 1999 for St. Louis public school teachers resulted in large increases in pension wealth for active teachers, as well as a powerful increase in ‘push’ incentives for earlier retirement. Simple descriptive statistics on retirement patterns before and after the enhancements suggest much earlier retirement resulted. Shorter teaching spells imply a steady state with more teacher turnover and a larger share of novice teachers in classrooms. To better understand the long-run effects of these changes and alternative policies, the authors estimate a structural model of teacher retirement. Simulations of retirement behavior for representative senior teachers point to shorter completed teaching spells and earlier retirement age as a result of the enhancements. By contrast, moving from the post-1999 to a DC-type plan would extend the teaching career of a representative senior teacher by roughly two years.
{"title":"Teacher pension enhancements and staffing in an urban school district","authors":"Shawn Ni, M. Podgursky, Xiqian Wang","doi":"10.1017/S1474747221000287","DOIUrl":"https://doi.org/10.1017/S1474747221000287","url":null,"abstract":"Abstract Many states enhanced benefits in teacher retirement plans during the 1990s. This paper examines the school staffing effects of one such enhancement in a major urban school district with mostly high poverty schools. Pension rule changes in 1999 for St. Louis public school teachers resulted in large increases in pension wealth for active teachers, as well as a powerful increase in ‘push’ incentives for earlier retirement. Simple descriptive statistics on retirement patterns before and after the enhancements suggest much earlier retirement resulted. Shorter teaching spells imply a steady state with more teacher turnover and a larger share of novice teachers in classrooms. To better understand the long-run effects of these changes and alternative policies, the authors estimate a structural model of teacher retirement. Simulations of retirement behavior for representative senior teachers point to shorter completed teaching spells and earlier retirement age as a result of the enhancements. By contrast, moving from the post-1999 to a DC-type plan would extend the teaching career of a representative senior teacher by roughly two years.","PeriodicalId":46635,"journal":{"name":"Journal of Pension Economics & Finance","volume":"21 1","pages":"613 - 633"},"PeriodicalIF":1.2,"publicationDate":"2021-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1474747221000287","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44819042","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-15DOI: 10.1017/S1474747221000275
Sarah Walker
Most scholarly and popular writing on asset management focuses on the evolution of the profession in the United States, Benjamin Graham, David Dodd, and Warren Buffet are revered.
{"title":"The Origins of Asset Management from 1700 to 1960: Towering Investors By Nigel Edward Morecroft. Palgrave Studies in the History of Finance, 1st ed. 2017.","authors":"Sarah Walker","doi":"10.1017/S1474747221000275","DOIUrl":"https://doi.org/10.1017/S1474747221000275","url":null,"abstract":"Most scholarly and popular writing on asset management focuses on the evolution of the profession in the United States, Benjamin Graham, David Dodd, and Warren Buffet are revered.","PeriodicalId":46635,"journal":{"name":"Journal of Pension Economics & Finance","volume":"21 1","pages":"665 - 667"},"PeriodicalIF":1.2,"publicationDate":"2021-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1474747221000275","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45597326","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-05-26DOI: 10.1017/S1474747221000238
R. Rofman
This is, as the note about the author mentions, the ninety-fourth book that Carmelo Mesa-Lago has published, most of them on social security issues. From his groundbreaking ‘Social Security in Latin America: Pressure Groups, Stratification and Inequality’ published 43 years ago, Professor Mesa-Lago has been an unavoidable reference in any analysis of social security policies in Latin America and beyond. This background, by itself, should be enough to motivate interest on his most recent publication. However, the book deserves attention on itself. Mesa-Lago brings the spotlight to a debate that is very relevant for those interested in Latin America’s history of social security and social protection in the last four decades, as well as of those who are trying to understand what should be expected from these policies in the future and what can we do about it. The book mostly focuses on a topic that has been discussed at length in recent years: whether the ‘structural reforms’ introduced to pension systems in several Latin American countries since the 1980s can be considered successful or failures. To achieve this objective, Mesa-Lago looks at three different aspects: the policy-making process, the performance on five dimensions as compared with the ‘promises’ of those who promoted the reforms, and the performance of some of the systems after a re-reform was implemented. On the first aspect (the policy-making process), Mesa-Lago points out that some of the reforms (particularly, the earlier ones in Chile and Peru) were implemented by authoritarian or dictatorial governments, with little or no space to discuss them. Also, in some of the more democratic countries the political process that resulted in the approval of the reform was far from being open and transparent. His main (and very strong) point on this topic is straightforward: while there are no guarantees; open, participatory discussion and transparent democratic approval should be a requisite to make structural changes to policies and institutions that are supposed to last for decades and provide income security to generations to come. In their absence, the risk of making poor technical choices is higher (as there are less instances of assessment of the proposed changes) but also policy choices with large impacts are taken without participation and commitment of those that will be affected. The second aspects discussed in the book (the performance of the reformed systems) is more difficult but also the most interesting one. As Mesa-Lago correctly mentions several times in the document, data availability, quality and comparability are problematic in several countries, making this a challenging task. Moreover, there is one aspect that Mesa-Lago does not bring up but is even more challenging: defining a proper counterfactual to the reforms. As in any policy impacts assessment, the analysis requires a scenario to be compared with the actual results. The book is silent on this discussion, and Mesa-
{"title":"‘Evaluation of Four Decades of Pension Privatization in Latin America, 1980–2020: Promises and Reality’ By Carmelo Mesa-Lago","authors":"R. Rofman","doi":"10.1017/S1474747221000238","DOIUrl":"https://doi.org/10.1017/S1474747221000238","url":null,"abstract":"This is, as the note about the author mentions, the ninety-fourth book that Carmelo Mesa-Lago has published, most of them on social security issues. From his groundbreaking ‘Social Security in Latin America: Pressure Groups, Stratification and Inequality’ published 43 years ago, Professor Mesa-Lago has been an unavoidable reference in any analysis of social security policies in Latin America and beyond. This background, by itself, should be enough to motivate interest on his most recent publication. However, the book deserves attention on itself. Mesa-Lago brings the spotlight to a debate that is very relevant for those interested in Latin America’s history of social security and social protection in the last four decades, as well as of those who are trying to understand what should be expected from these policies in the future and what can we do about it. The book mostly focuses on a topic that has been discussed at length in recent years: whether the ‘structural reforms’ introduced to pension systems in several Latin American countries since the 1980s can be considered successful or failures. To achieve this objective, Mesa-Lago looks at three different aspects: the policy-making process, the performance on five dimensions as compared with the ‘promises’ of those who promoted the reforms, and the performance of some of the systems after a re-reform was implemented. On the first aspect (the policy-making process), Mesa-Lago points out that some of the reforms (particularly, the earlier ones in Chile and Peru) were implemented by authoritarian or dictatorial governments, with little or no space to discuss them. Also, in some of the more democratic countries the political process that resulted in the approval of the reform was far from being open and transparent. His main (and very strong) point on this topic is straightforward: while there are no guarantees; open, participatory discussion and transparent democratic approval should be a requisite to make structural changes to policies and institutions that are supposed to last for decades and provide income security to generations to come. In their absence, the risk of making poor technical choices is higher (as there are less instances of assessment of the proposed changes) but also policy choices with large impacts are taken without participation and commitment of those that will be affected. The second aspects discussed in the book (the performance of the reformed systems) is more difficult but also the most interesting one. As Mesa-Lago correctly mentions several times in the document, data availability, quality and comparability are problematic in several countries, making this a challenging task. Moreover, there is one aspect that Mesa-Lago does not bring up but is even more challenging: defining a proper counterfactual to the reforms. As in any policy impacts assessment, the analysis requires a scenario to be compared with the actual results. The book is silent on this discussion, and Mesa-","PeriodicalId":46635,"journal":{"name":"Journal of Pension Economics & Finance","volume":"21 1","pages":"305 - 306"},"PeriodicalIF":1.2,"publicationDate":"2021-05-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1474747221000238","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45837932","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-05-11DOI: 10.1017/S1474747221000202
I. Koetsier, J. Bikker
Abstract This study investigates herd behavior exhibited by pension funds in the sovereign bond market before, during and after the European debt crisis. It uses unique monthly data on sovereign bond holdings of pension funds and transactions between December 2008 and December 2014. The dataset covers 67 large Dutch pension funds that invest in bonds from 109 countries. We find evidence of intensive herd behavior of Dutch pension funds in sovereign bonds. We also distinguish between European countries which suffer from the European debt crisis, such as Cyprus, Greece, Ireland, Italy, Portugal and Spain, and those that have not. We find high sell herding and low buy herding for the crisis countries during the European debt crisis, whereas in the non-crisis period their herd behavior does not differ substantially from that in non-crisis countries. When we control for institutional, macroeconomic, financial market and pension fund factors, sell herding in crisis countries is still significantly higher. However, we find no evidence of destabilizing behavior with respect to bonds of crisis countries during the European debt crisis.
{"title":"Herd behavior of pension funds in sovereign bond investments","authors":"I. Koetsier, J. Bikker","doi":"10.1017/S1474747221000202","DOIUrl":"https://doi.org/10.1017/S1474747221000202","url":null,"abstract":"Abstract This study investigates herd behavior exhibited by pension funds in the sovereign bond market before, during and after the European debt crisis. It uses unique monthly data on sovereign bond holdings of pension funds and transactions between December 2008 and December 2014. The dataset covers 67 large Dutch pension funds that invest in bonds from 109 countries. We find evidence of intensive herd behavior of Dutch pension funds in sovereign bonds. We also distinguish between European countries which suffer from the European debt crisis, such as Cyprus, Greece, Ireland, Italy, Portugal and Spain, and those that have not. We find high sell herding and low buy herding for the crisis countries during the European debt crisis, whereas in the non-crisis period their herd behavior does not differ substantially from that in non-crisis countries. When we control for institutional, macroeconomic, financial market and pension fund factors, sell herding in crisis countries is still significantly higher. However, we find no evidence of destabilizing behavior with respect to bonds of crisis countries during the European debt crisis.","PeriodicalId":46635,"journal":{"name":"Journal of Pension Economics & Finance","volume":"21 1","pages":"475 - 501"},"PeriodicalIF":1.2,"publicationDate":"2021-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1474747221000202","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46834011","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-05-06DOI: 10.1017/S1474747221000196
Pascal Kieren, M. Weber
Abstract We field a large online survey to study preferences and hypothetical product choices for phased withdrawal accounts and compare their demand to the demand of annuities. We find that most individuals prefer phased withdrawal accounts with dynamic withdrawal rates and equity-based asset allocation. Additionally, when offered the opportunity to exchange the phased withdrawal account with an annuity, most individuals decline to annuitize. Our results suggest that policymakers should consider offering combined solutions of phased withdrawals and annuities. Retirees who are averse to full annuitization could preserve some of their accumulated wealth while also acquiring protection against longevity risk.
{"title":"When saving is not enough – wealth decumulation in retirement","authors":"Pascal Kieren, M. Weber","doi":"10.1017/S1474747221000196","DOIUrl":"https://doi.org/10.1017/S1474747221000196","url":null,"abstract":"Abstract We field a large online survey to study preferences and hypothetical product choices for phased withdrawal accounts and compare their demand to the demand of annuities. We find that most individuals prefer phased withdrawal accounts with dynamic withdrawal rates and equity-based asset allocation. Additionally, when offered the opportunity to exchange the phased withdrawal account with an annuity, most individuals decline to annuitize. Our results suggest that policymakers should consider offering combined solutions of phased withdrawals and annuities. Retirees who are averse to full annuitization could preserve some of their accumulated wealth while also acquiring protection against longevity risk.","PeriodicalId":46635,"journal":{"name":"Journal of Pension Economics & Finance","volume":"21 1","pages":"446 - 473"},"PeriodicalIF":1.2,"publicationDate":"2021-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1474747221000196","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46998081","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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