Choice of pension management fees and effects on pension wealth

Bernal, Noelia; Olivera, Javier

doi:10.1016/j.jebo.2020.03.036

Cited by 11 publications

(8 citation statements)

References 15 publications

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“…The methodology of the current and prospective assessment of this efficacy as exemplified by this Kazakhstan case study reflects the macroeconomic level of the pension provision efficacy. It assumes an integral assessment rather than an assessment by particular indicators, in contrast to the existing techniques used [6,7,20].…”

Section: Discussionmentioning

confidence: 99%

“…The method for determining the weight factors of indicators in the model of the current assessment makes it possible to combine statistical and expert characteristics of indicator significance, which ensures high accuracy of the assessment results. This approach enables assessing the synthetic efficacy of the pension system rather than the impact of pension provision on economic activity in the country from the viewpoint of the adequacy of pension payments in relation to the pensioners' standard of living [20]. Thus, the pension system efficacy is perceived as a macroeconomic category and, with regard to specific conditions, it is substantiated as the ratio between the pension system adequacy (including protection against poverty and consumption smoothing) and its cost, pension costs, and negative effects on the economy, especially in the labor market.…”

Section: Discussionmentioning

confidence: 99%

“…In economics, the adequacy of pension provision to guarantee the material well-being of people of retirement age has ceased to be the only criterion for assessing the pension system [20]. Regarding current demographic trends, the discussion of pension system efficacy is also gaining importance [21][22][23][24].…”

Section: Literature Reviewmentioning

confidence: 99%

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The Efficacy of the Retirement Pension Provision System: Modeling, and Assessing of the Case of Kazakhstan

Junusbekova

Zhaumitova

2020

Journal of Open Innovation: Technology, Market, and Complexity

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This research is aimed at developing a methodology for assessing the efficacy of a macroeconomic model of the Kazakhstani pension provision system. A hierarchy of indicators of the pension system efficacy is built using the graph method. The representativeness of these indicators is confirmed by using expert assessment and factor analysis. A multi-factor assessment model is built using an additive convolution of the normalized values of the 2014–2019 resulting indicators with a breakdown by regions, regarding the coefficients of their significance. A regression model is developed to show the dependence of the pension system efficacy on the share of the accumulative system in the structure of retirement scheme financing. The optimal part of the accumulative system amounting to 79.5% of the total system is determined to be the level at which the pension system efficiency is maximized. A neural model for predicting the pension system efficacy under the influence of labor market indicators is built. The size of the minimum required annual payroll deductions from the wages of persons working according to the accumulative system is calculated depending on the length of service; this minimum size ensures a replacement rate of 40% with regard to the optimal ratio of the accumulative and solidarity pension systems. These findings will be useful to state bodies when developing and clarifying directions for reforming the pension system in Kazakhstan.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

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The Efficacy of the Retirement Pension Provision System: Modeling, and Assessing of the Case of Kazakhstan

Junusbekova

Zhaumitova

2020

Journal of Open Innovation: Technology, Market, and Complexity

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“…The method proposed measures the relationship between each nancial behavior with the two measures of nancial literacy. We rst report the logistic (or the ordered logistic for categorical variables) estimations and then use IV 2SLS estimations [5].…”

Section: Estimations Methods and Limitationsmentioning

confidence: 99%

Financial Literacy and Finance Behaviors in Latin America and its Relationship with the COVID-Pandemic Period

Sandoval

Collazos

Sarmiento

et al. 2022

Preprint

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Governments worldwide conceive financial literacy as a crucial issue to improve the financial well-being of families. However, the relationship between financial literacy and financial behaviors is inconclusive, especially in developing countries where few studies have tried to assess this relationship. We considered a subjective and an objective measure for financial literacy and 16 financial behaviors of participants from Argentina, Colombia, Ecuador, Mexico, and Peru. In general, we found endogeneity issues in most financial behaviors, and most financial behaviors are not correlated with any of the two measures of financial literacy. Despite that, we found a positive statistically significant relationship between financial literacy and having a savings account, having a budget, setting long-term goals, being willing to take risks, and considering the affordability of something before buying it. Additionally, we found a negative statistically significant relationship between financial literacy and the probability of having higher spending than income and having informal loans. The relationships of the objective financial literacy measure (the Big Three questions) with those financial behaviors listed previously are statistically dependent on the COVID pandemic, which was not the case for the subjective financial literacy measure. The results of the endogeneity issue and the fact that financial literacy might not impact all financial behaviors should be considered for the design of future financial education programs or research projects. JEL classification codes: G51, G53

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“…For Perú and Ecuador, the number of studies attempting to assess the relationship between nancial knowledge and nancial behaviors is scarce, but some related studies can be found, such as the ones by Bernal & Olivera (2020) and Prado et al (2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Knowledge and Finance Behaviors in Latin America and its Relationship with the COVID-19 Pandemic Period

Sandoval,

Collazos,

Sarmiento

et al. 2023

Preprint

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Governments worldwide conceive financial education as a crucial tool for enhancing the financial well-being of families. However, the relationship between financial knowledge and financial behaviors remains inconclusive, particularly in developing countries where a limited number of studies have explored this connection. This study employed a subjective and an objective measure of financial knowledge and assessed 16 financial behaviors of participants from Argentina, Colombia, Ecuador, Mexico, and Peru. Out of these 16 financial behaviors, 14 have a relationship with at least one of the two measures. This study found positive correlations between financial knowledge and various financial behaviors, including planning behaviors, acquisition of formal financial products, willingness to assume risks, seeking financial advice, and cautious management of their financial products. The relationship between the acquisition of informal financial products was positive with the objective financial knowledge measure but negative with the subjective measure. The identification of causal relationships proved challenging and often yield inconclusive results due to identified endogeneity issues and the presence of weak instruments. In general, during the COVID-19 period, participant displayed increased prudency in their financial practices and managing their products. This effect was larger among participants with higher levels of financial knowledge. Future research in Latin America should incorporate the distinction between financial literacy and financial knowledge, explore qualitative research designs, and evaluate the effectiveness of financial educational programs. JEL classification codes: G51, G53

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Choice of pension management fees and effects on pension wealth

Cited by 11 publications

References 15 publications

The Efficacy of the Retirement Pension Provision System: Modeling, and Assessing of the Case of Kazakhstan

The Efficacy of the Retirement Pension Provision System: Modeling, and Assessing of the Case of Kazakhstan

Financial Literacy and Finance Behaviors in Latin America and its Relationship with the COVID-Pandemic Period

Financial Knowledge and Finance Behaviors in Latin America and its Relationship with the COVID-19 Pandemic Period

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