The Future of Pensions: Reforms and their Consequences – Introduction

Danzer, Alexander M.; Disney, Richard; Dolton, Peter; Bondibene, Chiara Rosazza

doi:10.1177/002795011623700110

Cited by 6 publications

(2 citation statements)

References 8 publications

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“…The generous retirement payout is financed by the current taxpayers-a system called pay-as-you go (PAYG). However, this system becomes questionable on the ground of state financial sustainability, when the ratio of the number of pension recipients to number of taxpayers is becoming higher and rising rapidly, as a consequence of an ageing population (Danzer et al 2016;Mertl et al 2019;Wang 2021).…”

Section: Introductionmentioning

confidence: 99%

Pension and Active Ageing: Lessons Learned from Civil Servants in Indonesia

Ananta

Moeis²,

Widianto³

et al. 2021

Social Sciences

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Many developing countries are currently facing an ageing population without sufficient preparation for old-age financial adequacy, an important component in active ageing. One question is whether a pension system can create old-age financial adequacy. At the same time, many countries are shifting their pension systems from a defined benefit to a defined contribution pension system to improve the welfare of older people while maintaining state budget sustainability. Indonesia is not an exception. This paper learns from civil servants in Indonesia, where the retirement payout from the existing pay-as-you-go, defined benefit system is meagre. The system is to be transformed into a defined contribution one. Using a simulation method, this paper examines whether the proposed system will provide a better retirement payout, which is higher than the minimum wage and will allow retirees to maintain their pre-retirement income. This paper concludes that the proposed system alone is not sufficient to create old-age financial adequacy and, therefore, is less able to contribute to active ageing. To improve the retirement payout, among other things, the retirement age should be raised and made optional, and the accumulated savings should be re-invested during the retirement period.

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Section: Introductionmentioning

confidence: 99%

Pension and Active Ageing: Lessons Learned from Civil Servants in Indonesia

Ananta

Moeis²,

Widianto³

et al. 2021

Social Sciences

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“…The current architecture of the British pension system calls for more active saving from individuals. It has become crucial to understand one's retirement saving outside the state or workplace pension schemes that occur automatically (Danzer et al , 2016), which this study refers to as discretionary retirement saving . This type of saving is particularly important for the younger half of the working-age population, as they are saving under the new pension policy structure.…”

Section: Introductionmentioning

confidence: 99%

Can't save or won't save: financial resilience and discretionary retirement saving among British adults in their thirties and forties

Suh

2021

Ageing and Society

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This study examines retirement saving activity outside the state and workplace pension saving schemes among British adults aged between 30 and 49 on the premise that individuals are increasingly encouraged to save for their retirement in the new pension policy structure in Britain. The issue of under-saving among the younger adults has been studied with the focus on internal characteristics, such as undesirable attitudinal or behavioural tendencies (‘won't save’), or on external factors, such as income (‘can't save’). Building on these discussions, this study tests the role of internal characteristics and further examines the interplay between internal and external factors. The decision-making process for retirement saving is mapped based on the Model of Financial Planning with minor modifications. The analysis utilises the fourth wave of the Wealth and Assets Survey (2012/2014), and is conducted in the structural equation modelling framework. Results show that younger adults’ discretionary retirement saving is an outcome of a complex interplay between internal and external factors. Financial resilience, which indicates current financial behaviours and wellbeing, is found to be the strongest predictor for identifying a discretionary retirement saver, but it is closely connected to individuals’ income and home-ownership. The findings also suggest that social and economic arrangements are important to consider as social ageing, individuals’ projection on their lifestages, may be more informative than age per se for understanding younger adults’ retirement saving behaviour. These findings have important implications for the policies that aim to increase retirement saving participation.

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Fully Funded Defined Contribution Pension System

Ananta

Arifin

2023

Handbook of Aging, Health and Public Policy

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The Future of Pensions: Reforms and their Consequences – Introduction

Cited by 6 publications

References 8 publications

Pension and Active Ageing: Lessons Learned from Civil Servants in Indonesia

Pension and Active Ageing: Lessons Learned from Civil Servants in Indonesia

Can't save or won't save: financial resilience and discretionary retirement saving among British adults in their thirties and forties

Fully Funded Defined Contribution Pension System

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