2015

For many countries, age pension expenditure will increase dramatically over the next few decades due to a shift in demographics. In the literature, research and solutions have mostly been concerned with separate nancing systems, such as pay-as-you-go, means-testing and superannuation. A broad comparison between the systems has received limited attention.

Developing a liquid longevity market requires reliable and well-designed financial instruments. An index-based longevity swap and a cap are analysed in this paper under a tractable stochastic mortality model. The model is calibrated using Australian mortality data and analytical formulas for prices of longevity derivatives are provided.

Jobb i 30 år og få 66 prosent av din sluttlønn som pensjon, resten av livet. Høres ikke det ut som en god avtale? På papiret, ja, men realiteten er ofte en annen. Rundt 180 000 arbeidstakere i privat sektor og alle i offentlig sektor er aktive medlemmer i ytelsesbaserte pensjonsordninger. Pensjonsløftet i disse ordningene var en viss prosent av sluttlønn i pensjon, som oftest 66 prosent, gitt lang nok tjenestetid i ordningen – som regel minst 30 år.

In this paper, we investigate two fiscal policy options to mitigate fiscal pressure arising from an ageing of Australian population: pension cuts or tax hikes. Using a computable overlapping generations model, we find that while the two policy options achieve the same fiscal goal, the macroeconomic and welfare outcomes differ significantly.

Population ageing can contribute to a shortage in labour supply. An obvious and popular response to this is to encourage workers to delay their retirement.

According to the standard life cycle theory of consumption with quadratic preferences, anticipated income changes do not affect individuals’ consumption profiles because rational agents smooth their consumption over the life cycle using their savings.

There is a persistent association between health and portfolio choice, but hardly anything is known about the underlying sources of heterogeneity: what makes healthier individuals hold more risky assets?

This paper applies cointegration techniques, developed in econometrics to model long-run relationships, to cause-of-death data. We analyze the five main causes of death across five major countries, including USA, Japan, France, England & Wales and Australia.

Using eight years of data drawn from the records of Australia's Centrelink agency, we describe the income, asset and decumulation patterns of over 10,000 age pensioners. Analysis of this longitudinal data set shows that age pensioners, on average, preserve both financial and residential wealth, consuming conservatively and, ultimately, passing on substantial bequests.

Previous studies find that individuals do not draw down their assets after retirement which is at odds with the predictions of a simple life cycle model without uncertainty. Hurd (1989, 1999) explains saving behavior of elderly singles and couples by adding lifetime uncertainty and bequest motives to the simple life cycle model.

This paper explores the financial sustainibility of a typical U.S. state defined-benefit pension fund under the continuation of current policies and under alternative policies, such as alternative contribution, indexation and investment allocation policies

De siste ti årene har en økende andel arbeidstakere fortsatt i arbeid etter fylte 50 år, og økningen er særlig sterk etter fylte 60 år. Det er et mål å øke sysselsettingen blant seniorer. I denne artikkelen har vi undersøkt hva som skjer med de som slutter i arbeid etter fylte 50 år; hvilke veier har de tatt ut av arbeidslivet? Med «veier ut av arbeidslivet» mener vi her hvilke ytelser de eventuelt mottar fra NAV når de ikke lenger er i arbeid.