Demographic change means that more people will live past the point where they require care. As the increase in life expectancy looks set to continue, we need to develop enterprising and innovative ways to help people save and plan for this eventuality and bring new money into the care system. If people are to save for their future, especially people who are on lower incomes or are less wealthy, it is essential that they have opportunities to do so in a way that is simple, attractive, engaging, and safe, and which provides them with more choice about the care and support they would like. Equally, they must not be penalised for having done so through means tested support. This is what Personal Care Savings Bonds are intended to be all about.
Happily ever after... or until we run out of money. Effects of longevity on f...GRAPE
Many people think that they are cautious and taking proper care of their future. They make precautionary savings and employ various strategies to try to make sure they are not out of money if they cannot work because of illness, or when they retire. Choices differ between people, depending on their financial situation, degree of optimism and attitude towards risk, but many are not saving enough for their old age.
The report discusses empirical evidence related to financial instruments which address the problems raised by longevity. We show how they could be expanded to encompass a large share of populations across Europe, as we age.
Demographic change means that more people will live past the point where they require care. As the increase in life expectancy looks set to continue, we need to develop enterprising and innovative ways to help people save and plan for this eventuality and bring new money into the care system. If people are to save for their future, especially people who are on lower incomes or are less wealthy, it is essential that they have opportunities to do so in a way that is simple, attractive, engaging, and safe, and which provides them with more choice about the care and support they would like. Equally, they must not be penalised for having done so through means tested support. This is what Personal Care Savings Bonds are intended to be all about.
Happily ever after... or until we run out of money. Effects of longevity on f...GRAPE
Many people think that they are cautious and taking proper care of their future. They make precautionary savings and employ various strategies to try to make sure they are not out of money if they cannot work because of illness, or when they retire. Choices differ between people, depending on their financial situation, degree of optimism and attitude towards risk, but many are not saving enough for their old age.
The report discusses empirical evidence related to financial instruments which address the problems raised by longevity. We show how they could be expanded to encompass a large share of populations across Europe, as we age.
29Oct14 - Productive Ageing - Dr Ros Altmann ILC- UK
This Robert Butler Memorial Lecture, held on Wednesday 29th October 2014, was part of the ILC Global Alliance visit to the UK.
Robert Butler, founder of ILC US, was a passionate believer in the importance of health and productive ageing and we were honoured that Dr Ros Altmann, government’s Business Champion for Older Workers agreed to give the Lecture.
This presentation reproduces highlights from the 2015 OECD Review of Pension Systems in Mexico. The review was launched in Mexico City in the presence of Minister Luis Videgaray Caso, Ministry of Finance and Public Credit, OECD Secretary-General Angel Gurría and Carlos Ramirez Fuentes, President of CONSAR (National Commission for the Pension System). http://www.oecd.org/pensions/oecd-review-pension-systems-mexico.htm
Many older people have equity tied up in their homes that could be used to provide them with a greater income in later life and improve their standard of living. Traditionally, the ways to unlock the equity in people’s homes have been through downsizing, equity release lifetime loans or home reversion plans. However, not everyone is in a position to downsize, there are pros and cons to each approach, and all have associated costs.
The Equity Bank would provide a new way for people to unlock the equity in their home. It would be a state agency which provides people with a low cost fixed lifetime income in exchange for a fixed share of the equity in their home. The Equity Bank would take a charge on the person’s home and recover the value of the equity from the person’s estate after their death.
The event was chaired by Baroness Sally Greengross, Chief Executive of the ILC-UK. Nick Kirwan, Director of the ILC-UK Care Funding Advice Network, opened the discussion. Professor Les Mayhew of Cass Business School and co-author of the paper 'The UK Equity Bank - Towards income security in old age' thened present the concept, after which Paul Burstow MP responded. There was then time for questions and a general discussion.
Maximising the potential of the UK's ageing population. Lessons from Asia and...ILC- UK
On Thursday, 21st April 2016 the International Longevity Centre and the Global Aging Institute hosted a roundtable discussion with European Commissioners on maximising the potential of Europe's ageing population in reference to Asian best practice, supported by Prudential Plc.
The discussion focused on how different Asian countries address the demographic challenge posed by an ageing society, and how they respond to the social mood relating to work and retirement; participants also considered how healthcare can meet the challenges posed by rapidly ageing societies across Europe.
Paying for long term care insurance: The pros and cons of different payment m...ILC- UK
As the population of the UK continues to age, the demand for social care increases, as do the associated costs. How to pay for long term care is therefore a hot topic in the insurance world and amongst policy makers.
This event will saw the launch of a new paper from the ILC-UK and Cass Business School which investigates different ways in which individuals can purchase and pay for insurance products specifically to help them to pay for their care costs in later life.
Chaired by Baroness Sally Greengross OBE, Chief Executive of the ILC-UK, the launch included a keynote presentation report co-author Professor Les Mayhew. Responses were given by Jules Constantinou, Regional Manager, Gen Re Life/Health; Brian Fisher, Aviva/Friends Life, and Steve Lowe, Just.
This was the final event in the Population Patterns Seminar Series which explored the “silver separators”- divorce later in life.
Figures from the Office for National Statistics published in 2012 showed a huge rise in the divorce rate amongst those in their 60s, with an increase of 58% on the 2011 figure. The last 10 years have seen more and more older people part ways, despite divorce amongst the general population becoming less common. This has happened to such an extent that the over 60’s are now the fastest growing divorce group in the UK.
A variety of reasons have been suggested, including a reduction in the stigma surrounding divorce and couples no longer feeling obliged to stay together if their attitudes and needs change.
However, figures released by the ONS in June 2012 revealed that marriages involving older people were also rising faster than for other age groups – up by 21% for women and by 25% for men in their late sixties. Re-partnership is likely to be even higher than these figures suggest, as older people in a new relationship may not choose to remarry.
During the event the discussion explored a number of themes, including:
What factors have contributed to the rising rate of divorce amongst the over 60s?
How can older people’s relationships be better supported?
What challenges does ageing present to relationships?
How do care responsibilities effect relationships?
What are the potential ramifications of older couples separating?
The Financial Services Consumer Panel, (FSCP) recently published a report which argued that the annuity market does not work well for the majority of consumers. The Panel felt that the “complex market” was “failing to deliver good outcomes for many consumers”.
The value of annuities is increasingly being questioned by journalists and opinion formers. Rates are improving but have been relatively low and too few individuals exercise choice or have access to the advice they need. Those in favour of other alternative income options, such as income drawdown, have signalled that it is the end of annuities. Yet, annuities offer significant benefits over other forms of pension income. A guaranteed income for life is considered a better option by some customers.
The debate, sponsored by Legal & General, a leading annuity provider, in conjunction with the International Longevity Centre - UK (ILC-UK) was held in the House of Lords, on Thursday 30 January 2014.
During the event we explored what the industry, government and the regulator needs to do to respond to the FSCP challenges and whether annuities are still fit for purpose. Or does the industry need to innovate in product design and access to flexible solutions that meet future customers’ expectations?
The event, chaired by Baroness Sally Greengross, firstly presented the views of a panel of six leading representatives from across the industry who have an interest in the at retirement market outlining whether they believe that annuities are still fit for purposes and if not, what other options they believe should be considered.
The panel included Sue Lewis, Chair of the Financial Services Consumer Panel; Dan Hyde, Personal Finance Editor of the Daily Telegraph; Tom McPhail, Head of Research at Hargreaves Lansdown and Chair of Pension Income Choice Association (PICA); Ros Altmann, Economist and former Downing Street adviser; Jane Vass, Head of Public Policy at Age UK and Tim Gosden, Head of Strategy for Legal & General’s individual annuity business.
Following the panel presentation the debate was then opened to the invited audience which included parliamentarians and senior representatives from across the industry. Senior representatives of charities, think tanks, government departments, regulators and selected media contacts who regularly write on this subject, were also invited.
Throughout 2014, ILC-UK, supported by specialist insurance company, Partnership Assurance Group plc, is undertaking a series of events to explore the relationship between our changing demography and public policy.
The fourth event in this 'Population Patterns Seminar Series' considered the findings of our ‘Factpack’ of UK demographic statistics.
We all know that people are living longer but how is that likely to change our society? How will pensions be affected? How will we care for our growing older society when the traditional “working age” population is shrinking?
These types of debates are increasingly being played out in the media and in political circles but in order for such debates to be productive, they have to be well informed.
ILC-UK believes its 2014 ‘Factpack’ will support this process by highlighting the most recent evidence of our rapidly ageing society. Not only does it provide statistics on a range of critical topics from life expectancy to housing supply; and pensions to long-term care, it also includes a special focus on the current and potential future state of pensioner poverty.
The event was chaired by Baroness Sally Greengross (ILC-UK) with a welcome from Steve Haberman (Dean of the Cass Business School). We were delighted that Gregg McClymont MP, Shadow Minister (Work and Pensions), spoke at at the launch event. We also heard presentations from Professor Les Mayhew (Professor of Statistics, Cass Business School), Steve Groves (Chief Executive of Partnership), Ben Franklin (Research Fellow at ILC-UK) and a response from Tom Younger of the Department for Work and Pensions.
During the discussion we explored:
How the UK’s demography has changed since the release of the 2013 Factpack and how it might change in the future,
How demographic change is reshaping our society,
The challenge of pensioner poverty,
Regional variations in the experiences of older people,
How policy makers should respond to these findings.
Agenda
16:00 - 16:30 Registration
16:30 - 16:35 Welcome by Chair, Baroness Sally Greengross (ILC-UK)
16:35 - 16:40 Welcome by the Dean of Cass Business School, Professor Stete Habberman
16:40 - 16:50 Presentation from Richard Willets (Partnership)
16:50 - 17:10 Presentation from Gregg McClymont MP (Shadow Minister for Work and Pensions)
17:10 - 17:20 Presentation from Ben Franklin (ILC-UK)
17:20 - 17:30 Presentation from Professor Les Mayhew (Cass Business School) Presentation
17:30 - 17:35 Response from Tom Younger (Department for Work and Pensions)
17:35 - 18:25 Discussion/Q&A
18:25 - 18:30 Close by Chair, Baroness Sally Greengross (ILC-UK)
18:30 - 19:15 Drinks reception
Basic Income Ireland introductory presentationJohn Baker
Basic Income is an idea whose time has come. This presentation offers a general introduction to basic income with specific reference to Ireland. More information is available on our website basicincomeireland.com. Please contact us through our site if you would like us to come and talk about basic income.
Stephen C. Goss Presentation for Mercatus Center SSDI PanelMercatus Center
The Social Security Disability Insurance (DI) trust fund’s projected 2016 depletion will require Congress to act soon to prevent large, sudden benefit cuts.
Experts on both sides of the aisle have noted that a “quick fix” of simply shifting payroll taxes from Social Security’s much larger retirement trust fund (OASI) into DI, without further reform, could cost Congress its last chance to solve Social Security’s broader financing problems before it is too late. What more responsible reform options are available?
The Mercatus Center and the Committee for a Responsible Federal Budget hosted a discussion on May 12 on how best to respond to SSDI’s financing crisis.
Alexandre Cobigo: Departmental Councils to conduct reviews and issue opinionsTHL
JPI More Years Better Lives workshop: Integrating policies, programmes and services in an ageing society (30 October 2019)
https://thl.fi/en/web/thlfi-en/whats-new/events/thl-s-eu-2019-side-events/demographic-change-equality-and-wellbeing
This 2014 edition of the OECD Pensions Outlook examines the ever-changing pensions landscape. It looks at pension reform, the role of private pensions and retirement savings. Population ageing and longevity risk is examined as are the means of increasing coverage and providing automatic enrolment. This presentation by Pablo Antolin contains the highlights of main findings.
Find the book and more information about OECD work in this domain at http://oe.cd/Ov
29Oct14 - Productive Ageing - Dr Ros Altmann ILC- UK
This Robert Butler Memorial Lecture, held on Wednesday 29th October 2014, was part of the ILC Global Alliance visit to the UK.
Robert Butler, founder of ILC US, was a passionate believer in the importance of health and productive ageing and we were honoured that Dr Ros Altmann, government’s Business Champion for Older Workers agreed to give the Lecture.
This presentation reproduces highlights from the 2015 OECD Review of Pension Systems in Mexico. The review was launched in Mexico City in the presence of Minister Luis Videgaray Caso, Ministry of Finance and Public Credit, OECD Secretary-General Angel Gurría and Carlos Ramirez Fuentes, President of CONSAR (National Commission for the Pension System). http://www.oecd.org/pensions/oecd-review-pension-systems-mexico.htm
Many older people have equity tied up in their homes that could be used to provide them with a greater income in later life and improve their standard of living. Traditionally, the ways to unlock the equity in people’s homes have been through downsizing, equity release lifetime loans or home reversion plans. However, not everyone is in a position to downsize, there are pros and cons to each approach, and all have associated costs.
The Equity Bank would provide a new way for people to unlock the equity in their home. It would be a state agency which provides people with a low cost fixed lifetime income in exchange for a fixed share of the equity in their home. The Equity Bank would take a charge on the person’s home and recover the value of the equity from the person’s estate after their death.
The event was chaired by Baroness Sally Greengross, Chief Executive of the ILC-UK. Nick Kirwan, Director of the ILC-UK Care Funding Advice Network, opened the discussion. Professor Les Mayhew of Cass Business School and co-author of the paper 'The UK Equity Bank - Towards income security in old age' thened present the concept, after which Paul Burstow MP responded. There was then time for questions and a general discussion.
Maximising the potential of the UK's ageing population. Lessons from Asia and...ILC- UK
On Thursday, 21st April 2016 the International Longevity Centre and the Global Aging Institute hosted a roundtable discussion with European Commissioners on maximising the potential of Europe's ageing population in reference to Asian best practice, supported by Prudential Plc.
The discussion focused on how different Asian countries address the demographic challenge posed by an ageing society, and how they respond to the social mood relating to work and retirement; participants also considered how healthcare can meet the challenges posed by rapidly ageing societies across Europe.
Paying for long term care insurance: The pros and cons of different payment m...ILC- UK
As the population of the UK continues to age, the demand for social care increases, as do the associated costs. How to pay for long term care is therefore a hot topic in the insurance world and amongst policy makers.
This event will saw the launch of a new paper from the ILC-UK and Cass Business School which investigates different ways in which individuals can purchase and pay for insurance products specifically to help them to pay for their care costs in later life.
Chaired by Baroness Sally Greengross OBE, Chief Executive of the ILC-UK, the launch included a keynote presentation report co-author Professor Les Mayhew. Responses were given by Jules Constantinou, Regional Manager, Gen Re Life/Health; Brian Fisher, Aviva/Friends Life, and Steve Lowe, Just.
This was the final event in the Population Patterns Seminar Series which explored the “silver separators”- divorce later in life.
Figures from the Office for National Statistics published in 2012 showed a huge rise in the divorce rate amongst those in their 60s, with an increase of 58% on the 2011 figure. The last 10 years have seen more and more older people part ways, despite divorce amongst the general population becoming less common. This has happened to such an extent that the over 60’s are now the fastest growing divorce group in the UK.
A variety of reasons have been suggested, including a reduction in the stigma surrounding divorce and couples no longer feeling obliged to stay together if their attitudes and needs change.
However, figures released by the ONS in June 2012 revealed that marriages involving older people were also rising faster than for other age groups – up by 21% for women and by 25% for men in their late sixties. Re-partnership is likely to be even higher than these figures suggest, as older people in a new relationship may not choose to remarry.
During the event the discussion explored a number of themes, including:
What factors have contributed to the rising rate of divorce amongst the over 60s?
How can older people’s relationships be better supported?
What challenges does ageing present to relationships?
How do care responsibilities effect relationships?
What are the potential ramifications of older couples separating?
The Financial Services Consumer Panel, (FSCP) recently published a report which argued that the annuity market does not work well for the majority of consumers. The Panel felt that the “complex market” was “failing to deliver good outcomes for many consumers”.
The value of annuities is increasingly being questioned by journalists and opinion formers. Rates are improving but have been relatively low and too few individuals exercise choice or have access to the advice they need. Those in favour of other alternative income options, such as income drawdown, have signalled that it is the end of annuities. Yet, annuities offer significant benefits over other forms of pension income. A guaranteed income for life is considered a better option by some customers.
The debate, sponsored by Legal & General, a leading annuity provider, in conjunction with the International Longevity Centre - UK (ILC-UK) was held in the House of Lords, on Thursday 30 January 2014.
During the event we explored what the industry, government and the regulator needs to do to respond to the FSCP challenges and whether annuities are still fit for purpose. Or does the industry need to innovate in product design and access to flexible solutions that meet future customers’ expectations?
The event, chaired by Baroness Sally Greengross, firstly presented the views of a panel of six leading representatives from across the industry who have an interest in the at retirement market outlining whether they believe that annuities are still fit for purposes and if not, what other options they believe should be considered.
The panel included Sue Lewis, Chair of the Financial Services Consumer Panel; Dan Hyde, Personal Finance Editor of the Daily Telegraph; Tom McPhail, Head of Research at Hargreaves Lansdown and Chair of Pension Income Choice Association (PICA); Ros Altmann, Economist and former Downing Street adviser; Jane Vass, Head of Public Policy at Age UK and Tim Gosden, Head of Strategy for Legal & General’s individual annuity business.
Following the panel presentation the debate was then opened to the invited audience which included parliamentarians and senior representatives from across the industry. Senior representatives of charities, think tanks, government departments, regulators and selected media contacts who regularly write on this subject, were also invited.
Throughout 2014, ILC-UK, supported by specialist insurance company, Partnership Assurance Group plc, is undertaking a series of events to explore the relationship between our changing demography and public policy.
The fourth event in this 'Population Patterns Seminar Series' considered the findings of our ‘Factpack’ of UK demographic statistics.
We all know that people are living longer but how is that likely to change our society? How will pensions be affected? How will we care for our growing older society when the traditional “working age” population is shrinking?
These types of debates are increasingly being played out in the media and in political circles but in order for such debates to be productive, they have to be well informed.
ILC-UK believes its 2014 ‘Factpack’ will support this process by highlighting the most recent evidence of our rapidly ageing society. Not only does it provide statistics on a range of critical topics from life expectancy to housing supply; and pensions to long-term care, it also includes a special focus on the current and potential future state of pensioner poverty.
The event was chaired by Baroness Sally Greengross (ILC-UK) with a welcome from Steve Haberman (Dean of the Cass Business School). We were delighted that Gregg McClymont MP, Shadow Minister (Work and Pensions), spoke at at the launch event. We also heard presentations from Professor Les Mayhew (Professor of Statistics, Cass Business School), Steve Groves (Chief Executive of Partnership), Ben Franklin (Research Fellow at ILC-UK) and a response from Tom Younger of the Department for Work and Pensions.
During the discussion we explored:
How the UK’s demography has changed since the release of the 2013 Factpack and how it might change in the future,
How demographic change is reshaping our society,
The challenge of pensioner poverty,
Regional variations in the experiences of older people,
How policy makers should respond to these findings.
Agenda
16:00 - 16:30 Registration
16:30 - 16:35 Welcome by Chair, Baroness Sally Greengross (ILC-UK)
16:35 - 16:40 Welcome by the Dean of Cass Business School, Professor Stete Habberman
16:40 - 16:50 Presentation from Richard Willets (Partnership)
16:50 - 17:10 Presentation from Gregg McClymont MP (Shadow Minister for Work and Pensions)
17:10 - 17:20 Presentation from Ben Franklin (ILC-UK)
17:20 - 17:30 Presentation from Professor Les Mayhew (Cass Business School) Presentation
17:30 - 17:35 Response from Tom Younger (Department for Work and Pensions)
17:35 - 18:25 Discussion/Q&A
18:25 - 18:30 Close by Chair, Baroness Sally Greengross (ILC-UK)
18:30 - 19:15 Drinks reception
Basic Income Ireland introductory presentationJohn Baker
Basic Income is an idea whose time has come. This presentation offers a general introduction to basic income with specific reference to Ireland. More information is available on our website basicincomeireland.com. Please contact us through our site if you would like us to come and talk about basic income.
Stephen C. Goss Presentation for Mercatus Center SSDI PanelMercatus Center
The Social Security Disability Insurance (DI) trust fund’s projected 2016 depletion will require Congress to act soon to prevent large, sudden benefit cuts.
Experts on both sides of the aisle have noted that a “quick fix” of simply shifting payroll taxes from Social Security’s much larger retirement trust fund (OASI) into DI, without further reform, could cost Congress its last chance to solve Social Security’s broader financing problems before it is too late. What more responsible reform options are available?
The Mercatus Center and the Committee for a Responsible Federal Budget hosted a discussion on May 12 on how best to respond to SSDI’s financing crisis.
Alexandre Cobigo: Departmental Councils to conduct reviews and issue opinionsTHL
JPI More Years Better Lives workshop: Integrating policies, programmes and services in an ageing society (30 October 2019)
https://thl.fi/en/web/thlfi-en/whats-new/events/thl-s-eu-2019-side-events/demographic-change-equality-and-wellbeing
This 2014 edition of the OECD Pensions Outlook examines the ever-changing pensions landscape. It looks at pension reform, the role of private pensions and retirement savings. Population ageing and longevity risk is examined as are the means of increasing coverage and providing automatic enrolment. This presentation by Pablo Antolin contains the highlights of main findings.
Find the book and more information about OECD work in this domain at http://oe.cd/Ov
The 2016 edition of the OECD Pensions Outlook analyses how the pensions landscape is changing in the face of challenges that include ageing populations, the fallout from the financial and economic crisis, and the current environment of low economic growth and low returns. This presentation by Pablo Antolin contains key findings from the publication.
Find the book and more information about OECD work on pensions at http://www.oecd.org/pensions/oecd-pensions-outlook-23137649.htm
Keynote speech from Andrew Dilnot, Chair of the Commission on Funding of Care and Support - 'Searching for Social Care Solutions'
Find out more at http://www.ageuk.org.uk/conferences
PENSION COVERAGE AND INFORMAL SECTOR WORKERS: INTERNATIONAL EXPERIENCESDr Lendy Spires
Introduction Modern pension system can trace their roots back at least to late 19th century in Germany, when the Bismarckian social welfare system was introduced. Nowadays, pensions have spread and established around the globe, including in both developed and developing countries. Though the type of pension system varies, all play an important role in providing necessary income to elderly populations and in alleviating post-retirement poverty among the poorest sectors of society.
However, despite the continued evolution and development of modern pension system over the past century, one issue which is yet to be resolved is how to extend such structured pensions arrangement to informal sector workers. Though the definition of this sector varies by country, informal sector workers are generally those with low incomes or self-employed, working in very small (unregistered) companies or the household sector, often on a part-time basis (and migrant workers) in industries such as agriculture, construction and services.
Compared to workers in the formal sector - who normally join either mandatory or voluntary pension systems, or both - those in the informal sector are typically not covered well (in many cases not at all) by modern, structured pension systems. They do not have access to pension plans organised or run by employers, may lack official registration papers or other documents which could help the relevant authorities target them for other schemes, may change job frequently and often live and work in rural areas which financial infrastructure is poor or non-existent.
These workers may also come from lower income and educated groups, meaning their knowledge and understanding of pension and saving products is limited and their resources for long-term savings scare. Hence gaining access to a structured pension system is a challenge for these workers. This issue is even more severe in developing countries, and indeed a rise in the informal sector has been correlated with economic growth in several regions. The challenge is greater in these countries partly due to logistical difficulties in getting informal sector workers to participate in pension schemes, and partly due to the traditional role of family support in pension provisioning.
Recently both the international community and national governments have realised the increasing importance and urgency of extending the pension system to the informal sector. Indeed, a range of different policy initiatives have been undertaken, aiming to tackle this problem given the country-specific conditions and environments. This paper provides a comparative overview of these policies, and aims to provide practical international experiences to other governments considering such pension reform initiatives. The remaining part of the paper is arranged as follows. Section 2 will give an overview of 1
09/09/2019 - This booklet presents the main messages from the OECD review of pensions systems in Peru. The review assesses Peru’s pension system in its entirety, looking at both public and private, pay-as-you-go (PAYG) financed and funded pension provisions. http://www.oecd.org/pensions/oecd-review-pension-systems-peru.htm
Journal of Economic Perspectives—Volume 19, Number 2—Spring 20.docxtawnyataylor528
Journal of Economic Perspectives—Volume 19, Number 2—Spring 2005—Pages 11–32
Saving Social Security
Peter A. Diamond and Peter R. Orszag
F or almost 70 years, Social Security has provided retirees with a basic level ofincome that is protected against inflation, financial market fluctuations andthe risk of outliving one’s assets. It protects against other risks as well, such
as disability or the death of a family wage earner. In addition, through its progres-
sive structure, Social Security provides some protection against one’s career not
turning out well. Social Security plays a critical role in providing financial security
during retirement: It provides the majority of income for two-thirds of elderly
beneficiaries, and all income for 20 percent of elderly beneficiaries.
Over the next 75 years, Social Security costs are projected to rise by about
2.5 percent of Gross Domestic Product (GDP), while revenues are projected to
decline slightly as a share of GDP. Social Security’s long-term financial health can
be restored through either minor adjustments or major surgery. In our view, major
surgery is neither warranted nor desirable—sustainable solvency and improved
social insurance can be accomplished by a progressive reform that combines
modest benefit reductions and revenue increases (as presented in more detail in
Diamond and Orszag, 2004).
We begin by describing some benefit improvements for vulnerable groups for
which there appears to be wide support, including from the President’s Commis-
sion to Strengthen Social Security (2001) appointed by President Bush. We then
discuss our proposed benefit and tax changes to close the underlying Social
Security deficit and finance these important social insurance improvements. We
also examine plans that replace part of Social Security with individual accounts,
explaining why, in our view, such a course would not represent sound policy.
y Peter A. Diamond is Institute Professor, Massachusetts Institute of Technology, Cambridge,
Massachusetts. Peter R. Orszag is the Joseph A. Pechman Senior Fellow in Economic Studies,
The Brookings Institution, Washington, D.C.
12 Journal of Economic Perspectives
Improving Social Insurance
We begin by focusing on a small number of particularly vulnerable beneficiary
types, following the lead of President Bush’s Commission to Strengthen Social
Security (2001) and others.1
First, workers with low lifetime earnings often live in poverty during retirement
despite Social Security’s progressive benefit formula. In 1993, taking into account
all sources of income, 9 percent of retired worker beneficiaries lived in poverty. Of
these poor retired worker beneficiaries, 10 percent had worked for 41 or more
years in employment covered by Social Security, and more than 40 percent had
worked between 20 and 40 years. In other words, many workers who have had
substantial connections to the work force throughout their careers nonetheless face
poverty in retirement. Our plan ...
The fiscal sustainability of long-term care and its impact on health systems ...OECD Governance
This presentation was made by Tim Muir, OECD, at the 4th meeting of the Joint DELSA/GOV-SBO Network on Fiscal Sustainability of Health Systems, held in Paris on 16-17 February 2015.
The fiscal sustainability of long-term care and its impact on health systems ...OECD Governance
This presentation was made by Tim Muir, OECD, at the 4th meeting of the Joint DELSA/GOV-SBO Network on Fiscal Sustainability of Health Systems, held in Paris on 16-17 February 2015.
Similar to Pensions Core Course 2013: Adequacy and Sustainability of Contributory and Non-contributory Pensions - An ILO View (20)
While continuing the World Bank’s commitment to help countries reach the education Millennium Development Goals (MDGs), the new Education Strategy 2020 focuses on the goal of Learning for All. Learning for All means giving all people equitable opportunities to acquire the knowledge and skills they need to have healthy and satisfying lives, to be good citizens, and to be productive
contributors to their countries’ economic development.
The World Bank invited attendees of Women Deliver 2013 to join a conversation about using Results-Based Financing (RBF) approaches to improve access to health services and health outcomes for mothers, newborns and children in developing countries. The Health Results Innovation Trust Fund (HRITF) presented promising data that is starting to come in from its portfolio of RBF programs.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
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Pensions Core Course 2013: Adequacy and Sustainability of Contributory and Non-contributory Pensions - An ILO View
1. Adequacy and Sustainability of Contributory and
Non-Contributory Pensions: An ILO View
April 4, 2013
Krzysztof Hagemejer
International Labour Office
2. Contents
• How societies define adequate pensions?
Concept of
adequacy
• Lessons from Europe
Balancing
adequacy
with
sustainability
• How to close global coverage gap?
Facing the
coverage
challenge
4. Questions to be asked and answered to
determine what pension provisions are
adequate
What is
retirement?
What society
should
guarantee?
Social contract:
What pension system
country should have?
5. Changing perceptions what is adequate may
lead to changes in explicit and implicit
social contracts
• Happens only when person is not able to work
anymore?
• Is a well deserved period of rest after working
life?
Definition and
timing of
retirement
• Guarantee aims only at alleviating poverty for
those unable to support themselves?
• Guarantees every resident a minimum income at
old-age?
• Guarantees also certain proportion of pre-
retirement income (replacement rates)?
Level of
societal
guarantees
• People should save for themselves
• Those unable to contribute/save should be
supported
• Younger should support old generation
Degree of
solidarity
6. Changing social contracts determine changes
in financial and institutional solutions
Social contract behind
pensions
What is retirement?
What is guaranteed by
the society?
How much solidarity and
redistribution towards
the poorer?
Financial and
institutional
alternatives
Mandatory versus
voluntary
Defined benefit versus
defined contribution
PAYG versus advanced
funding
Public versus private
provision
7. Defining pension adequacy
● Adequacy and sustainability are joint and
interlinked objectives of social policy
● Adequacy is defined nationally as part of the
broader implicit or explicit social contract which
sets the design of the pension system
● National social contracts cross the borders:
● there are standards accepted internationally (like ILO
Convention no 102 or Recommendation no 202)
● European Union Open Method of Coordination: Adequate
old-age pension systems should prevent poverty in the old
age but also provide income replacement after retirement
preventing sharp decline in living standards
8. Lessons from Europe
• Focus on sustainability but what about
adequacy?
Recent
reforms of
European
pensions to
face
demographic
challenge
9. In many European countries already introduced pension reforms
may successfully counterbalance financial impact of
demographic change (Projected change of public pension expenditure due
to different factors in GDP percentage points between 2010 and 2060)
-30 -25 -20 -15 -10 -5 0 5 10 15 20 25 30
LV
PL
EE
IT
DK
PT
FR
SE
EL
BG
UK
EU27
EA17
AT
DE
CZ
HU
FI
LT
NL
ES
RO
IE
NO
SK
MT
BE
SI
CY
LU
Demographic dependency Benefit reductions Other changes
10. In some countries public pension expenditure are
even projected to decrease and average projected
increase in most countries is far from dramatic
-5 0 5 10 15 20
Latvia
Poland
Estonia
Italy
Denmark
Portugal
France
Sweden
Greece
Bulgaria
UK
EU27
Austria
Germany
CzechRepublic
Hungary
Finland
Lithuania
Spain
Netherlands
Romania
Ireland
Norway
Slovakia
Malta
Belgium
Slovenia
Cyprus
Luxembourg
Percentage points
Resulting change
Benefit reduced
Other reforms
11. However in many countries reforms will significantly
affect future benefit levels...
Replacement rate in public pension schemes 2010 and 2060
Italy
Luxembourg
Spain
Greece
France
Malta
Portugal
Finland
Slovakia
Bulgaria
Poland
Norway
Latvia
EU27
Austria
Cyprus
Romania
Germany
Hungary
Lithuania
Ireland
Estonia
15
20
25
30
35
40
45
50
55
60
65
70
75
80
15 20 25 30 35 40 45 50 55 60 65 70 75 80
Replacementrateatretirementin2060
Replacement rate at retirement in 2010
Czech Republic
12. Even 40% replacement rate however does not
prevent poverty for those with low earnings
0
10
20
30
40
50
60
70
80
90
100
Bulgaria
CzechRepublic
Estonia
Slovakia
Luxembourg
Latvia
Spain
Lithuania
Hungary
Slovenia
Malta
Portugal
France
Romania
Croatia
UnitedKingdom
Netherlands
Belgium
Poland
Greece
Ireland
40%ofminimumwageaspercentageofrelativepovertyline
C102 benchmarks
40% of minimum wage as percentageof relativepoverty line, 2010
(poverty line thresholds at 40% and 60% of median income) 40% median income poverty threshold
60% median income poverty threshold
13. Nearly all EU member countries ratified:
● either ILO Convention no 102 (C.102) on
minimum standards in social security or
● European Code of Social Security (ECSS) of
the Council of Europe,
● and some ratified in addition also ILO
Convention no 128 on Invalidity, Old-age
and Survivors benefits (C.128).
14. Future replacement rates from contributory
pensions will be significantly reduced
● Reforms implemented or being implemented across
Europe are significantly reducing replacement rates
provided through the contributory, earnings related
parts of the national pension systems
● Replacement rates after 30 years in many countries
will be lower than 40 per cent required by
international standards
● Many of those with shorter or broken careers and low
incomes will not be eligible to pensions from
contributory parts of the pension system high enough
to prevent them from falling into poverty in the old-
age
15. Protection of those with broken careers and
lower life-time incomes weakened by reforms
● Many new reformed pension schemes are not just
translating differentiation of earnings at the labour market
into differentiation of pensions: these differences may
actually be amplified
● Reforms often removed from benefit formulas redistributive
components aimed to protect against poverty those with
lower earnings and shorter careers
● For a time being this changes has not yet been everywhere
adequately compensated by increased role of various non-
contributory provisions like basic minimum pensions or
subsidies to contributions of those caring for children or sick
and elderly, unemployed, persons with disabilities etc.
16. How to prevent from poverty those with lower
incomes and those having no possibility to have
long unbroken careers?
● Either one should preserve or restore in one way or
another the redistributive defined benefit formulas in
first pillars, or
● Secure that in the overall pension system there are
much stronger than before non-contributory income
guarantees (like basic state pension, universal or
means-tested) as well as contribution subsidies
compensating adequately some non-contributory
periods
● To secure sustainability, conditions have to be created
to effectively extend duration of working lives and
delay retirements
17. Automatic mechanisms will not replace good
policy making in social dialogue
● Many reforms introduce various automatic mechanisms to
ensure long-run financial sustainability of pensions
● There are no similar mechanisms to guarantee adequacy...
● ...other than good policy making through well informed
social dialogue based on agreed adequacy targets,
balancing shorter and longer term needs as well as benefit
adequacy with financial sustainability
18. Closing the coverage gap
• How to close global coverage gap?
Facing the
coverage
challenge
19. Demographic ageing will worsen
the global coverage gap
1. Now already 61% of the worlds’ elderly live in less
developed regions with lowest pension coverage
2. This percentage will increase to 83% in 2100
3. More than half of these not covered elderly are – and
will be - in Asia
4. now has only 5% of older than 65 live in Africa, it will
be more than 20% in 2100
5. There is more women than men among those not
covered
6. Now 35% of older than 65 live in Europe and North
America, in 2100 it will be only 15%
20. Greatest challenge in the ageing
world: coverage gap
• Only minority of the world’s working population
contributes to any pension scheme (30%)
• Only small minority of the world’s older persons receives
any pension (20% in low-income countries)
Provide at least basic income security to uncovered
majority of the elderly is a priority
Recommendation no 202 (2012) concerning national
floors of social protection
21. Role of non-contributory pensions in closing
coverage gaps
1. Low-income countries with very low coverage (i.e. Africa and Asia):
non-contributory pension the only way to provide at least basic
income security for majority of the elderly. Attractive option to be
selected as one of the first step to gradually build comprehensive
social security system
2. Countries with significant coverage gap mainly concerning poor self-
employed (like Chile etc.): the way not only to close effectively
coverage gap but also to strengthen minimum guarantees within the
whole pension system
3. Countries with coverage high now but which introduced reforms
aiming at having “actuarially fair” pensions: as the coverage in
terms of number of people entitled to reasonably adequate
pensions will be falling, the role of non-contributory pensions will
be growing in all respects: filling the emerging coverage gap,
guaranteeing minimum incomes and taking over redistributional
functions eliminated from contributory part of the system
22. Policy choices and parameters:
1. Entitlement conditions: universal pension for everybody over
certain age more equitable, simpler and cheaper
administratively then solutions with additional entitlement
criteria or “tests”
2. Age: should be coordinated with age in the contributory
programmes, in the longer run can be easily linked to life
expectancy or demographic structure, in some low income
countries however may be chosen at a higher level for cost
considerations and then gradually reduced.
3. Benefit level: chosen depending on the structure and
provisions of the overall pension system in the country and
minimum income guarantee levels targeted by social policy
4. Affordable everywhere if policy space available
23. Adequate and sustainable pensions part of
wider national social protection floors:
access to a set of
goods and services
constituting
essential health
care including
maternity care
basic income
security for
children
basic income
security for
persons in active
age unable to earn
sufficient income
basic income
security for
persons in old
age
The social protection floors should comprise at least the following
basic social security guarantees
national definition of minimum levels
Guarantees should be provided to at least all residents and children, as defined
in national laws and regulations, subject to Members’ existing international
obligations