Journal of Aging and Social Policy, 14(1), 2002, pp.9-21.
Publisher:
Routledge
Place of publication:
Philadelphia, USA
Over the last decade Latin American countries have served as the world's laboratory for pension systems based on individual retirement savings accounts. Some countries have adopted defined-contribution individual accounts as a replacementfor state-run pension systems; other countries have embraced mixed systems or have made individual accounts optional and supplementary. This article outlines some of the most significant elements of recent Latin American pension reforms and examines some of the most serious policy challenges faced by governmentsimplementing the new systems of individual accounts, including the need to reduceadministrative costs, limit evasion, incorporate new categories of workers into the system, and improve competition in the pension fund industry.
Over the last decade Latin American countries have served as the world's laboratory for pension systems based on individual retirement savings accounts. Some countries have adopted defined-contribution individual accounts as a replacementfor state-run pension systems; other countries have embraced mixed systems or have made individual accounts optional and supplementary. This article outlines some of the most significant elements of recent Latin American pension reforms and examines some of the most serious policy challenges faced by governmentsimplementing the new systems of individual accounts, including the need to reduceadministrative costs, limit evasion, incorporate new categories of workers into the system, and improve competition in the pension fund industry.
In 2009/10 around 1.8 million pensioners were living in households with household income below the relative poverty line of 60% of median income after housing costs. This represents 16% of a total of 11.5 million pensioners living in the UK. Further state pension reforms may have an impact on the income of current and future pensioners and hence on future levels of pensioner poverty. This report examines the potential impact of a range of alternative policy options that Government could adopt on future levels of pensioner poverty. Some of the policy proposals considered relate to the latest proposals suggested by the Government such as the introduction of a single-tier state pension of £140 a week. The report highlights the trade-offs faced by all Governments in terms of the potential effect on poverty reduction of alternative policies and the costs of the different policy options. The policy options that appear to be most effective at reducing future levels of pensioner poverty, such as the introduction of a flat-rate single-tier pension for all pensioners, are also the most expensive for the Government to implement. The report does not aim to suggest which policy should be adopted, but instead to highlight the implications of policy choices for possible future levels of pensioner poverty.
In 2009/10 around 1.8 million pensioners were living in households with household income below the relative poverty line of 60% of median income after housing costs. This represents 16% of a total of 11.5 million pensioners living in the UK. Further state pension reforms may have an impact on the income of current and future pensioners and hence on future levels of pensioner poverty. This report examines the potential impact of a range of alternative policy options that Government could adopt on future levels of pensioner poverty. Some of the policy proposals considered relate to the latest proposals suggested by the Government such as the introduction of a single-tier state pension of £140 a week. The report highlights the trade-offs faced by all Governments in terms of the potential effect on poverty reduction of alternative policies and the costs of the different policy options. The policy options that appear to be most effective at reducing future levels of pensioner poverty, such as the introduction of a flat-rate single-tier pension for all pensioners, are also the most expensive for the Government to implement. The report does not aim to suggest which policy should be adopted, but instead to highlight the implications of policy choices for possible future levels of pensioner poverty.
Subject terms:
older people, pensions, poverty, benefits, cost effectiveness, government policy;
Journal of European Social Policy, 13(2), May 2003, pp.159-173.
Publisher:
Sage
It has been argued that, in countries with high levels of owner occupation of housing, home ownership can serve as a substitute for generous pensions for older people. Two possible linking mechanisms have been posited in this context, one focusing on budget constraints (high housing costs associated with home purchase makes the funding of generous pensions unaffordable), the other on needs or incentives (high home ownership gives older people material security and so makes generous pensions unnecessary). This article examines Ireland as a test case in this context. It finds no evidence that either of the posited linking mechanisms were present in Ireland. House purchase costs historically have been too low to constrain pension development, while the distributive benefits for the elderly have
It has been argued that, in countries with high levels of owner occupation of housing, home ownership can serve as a substitute for generous pensions for older people. Two possible linking mechanisms have been posited in this context, one focusing on budget constraints (high housing costs associated with home purchase makes the funding of generous pensions unaffordable), the other on needs or incentives (high home ownership gives older people material security and so makes generous pensions unnecessary). This article examines Ireland as a test case in this context. It finds no evidence that either of the posited linking mechanisms were present in Ireland. House purchase costs historically have been too low to constrain pension development, while the distributive benefits for the elderly have been too modest to obviate the need for higher pension income. However, other distributive effects emerge as important, particularly the positive historical consequences of inflation and low real interest rates for home purchasers of all ages and the implicit subsidy to home ownership provided by savers
Subject terms:
home care, home ownership, income, older people, pensions, social policy, cost effectiveness;
Journal of Aging and Social Policy, 14(1), 2002, pp.53-65.
Publisher:
Routledge
Place of publication:
Philadelphia, USA
This article evaluates recent reforms of Italian social security with respect to both the (long) transition and the new steady state, as defined by the notional defined contribution formula. The first is hardly sustainable in the face of the projected sharp increase in the dependency ratio. The second is hardly compatible with a good allocation of risks, given the preponderance of the pay-as-you-go (PAYG) component.
This article evaluates recent reforms of Italian social security with respect to both the (long) transition and the new steady state, as defined by the notional defined contribution formula. The first is hardly sustainable in the face of the projected sharp increase in the dependency ratio. The second is hardly compatible with a good allocation of risks, given the preponderance of the pay-as-you-go (PAYG) component.
The fall in share prices is hitting earnings from voluntary sector portfolios, forcing organisations to rethink their costs and financial planning. At the end of December 1999, the FTSE 100 index stood at 6,930. In July this year, it was down to 3,777 - the lowest level for six years. The fall in the UK's stock market has affected not only big corporations' assets. Social care charities, too, are finding that millions have been wiped off the value of their investment portfolios. This article reports on charities' strategies to deal with income shortfalls.
The fall in share prices is hitting earnings from voluntary sector portfolios, forcing organisations to rethink their costs and financial planning. At the end of December 1999, the FTSE 100 index stood at 6,930. In July this year, it was down to 3,777 - the lowest level for six years. The fall in the UK's stock market has affected not only big corporations' assets. Social care charities, too, are finding that millions have been wiped off the value of their investment portfolios. This article reports on charities' strategies to deal with income shortfalls.
The report covers issues ranging from cost-benefit analysis, political and management support and staff issues such as pensions and the minimum wage. The position for both NHS Trusts and local authorities is taken into consideration throughout. For example, NHS Trusts have been known to start Social Firms to create employment for people with mental health problems in particular, and the Social
The report covers issues ranging from cost-benefit analysis, political and management support and staff issues such as pensions and the minimum wage. The position for both NHS Trusts and local authorities is taken into consideration throughout. For example, NHS Trusts have been known to start Social Firms to create employment for people with mental health problems in particular, and the Social Services departments of local authorities have tended to focus primarily on employment creation through Social Firms for people with learning disabilities. The report has been written in response to needs of the Social Firm sector, where many service provider organisations have started a Social Firm business to create employment for their disabled or disadvantaged client group but soon realise that these businesses are not always best placed within the original ‘host’ organisation and would do better as independent, or semi-independent entities. Although there are not many Social Firms that have come out of public authorities, there are a substantial number of NHS Trusts and Social Services departments currently grappling with the concept of externalising their Social Firm activities. It also ties into some of the government’s current strategies and policies, e.g. on public service delivery, third sector contracting and patient/service user-led services.
Subject terms:
pensions, privatisation, public sector, social services, user views, voluntary sector, contracts, cost effectiveness, disabilities;
GREAT BRITAIN. HM Treasury, GREAT BRITAIN. Department for Work and Pensions
Publisher:
Great Britain. HM Treasury
Publication year:
2003
Pagination:
42p.,tables.
Place of publication:
London
In June 2001, the Government commissioned Ron Sandler to identify the competitive forces that drive the retail financial service industry and to suggest policy responses to ensure that consumers are well served. His review found that the industry suffered from complexity and opacity, from problems of access for those on low to medium incomes, and from the inability of consumers to drive the market effectively. One of the review’s principal recommendations was for the Government to develop specifications for a suite of simple, low cost, and risk-controlled “stakeholder” products. They would help drive competition in the industry and would improve access to financial services for those on lower incomes. The review recommended that this suite should include, but not necessarily be limited to, a unitised product, a with-profits product and a pension product.
In June 2001, the Government commissioned Ron Sandler to identify the competitive forces that drive the retail financial service industry and to suggest policy responses to ensure that consumers are well served. His review found that the industry suffered from complexity and opacity, from problems of access for those on low to medium incomes, and from the inability of consumers to drive the market effectively. One of the review’s principal recommendations was for the Government to develop specifications for a suite of simple, low cost, and risk-controlled “stakeholder” products. They would help drive competition in the industry and would improve access to financial services for those on lower incomes. The review recommended that this suite should include, but not necessarily be limited to, a unitised product, a with-profits product and a pension product.
Journal of Aging and Social Policy, 14(1), 2002, pp.95-103.
Publisher:
Routledge
Place of publication:
Philadelphia, USA
In terms of numbers of people, the global challenges facing social security systems are largely Asian. Because of rapid population aging in Asia, while it accounted for 28% of the world's population aged 60 and older in 1985, that percentage will more than double to 58% in 2050. Provident funds are a prominent feature of retirement income systems in the region-Asia and the Pacific contain the majority of the world's countries with provident funds. These programs typically provide lump-sum benefits, and thus, do not provide annuity protection against outlivingone's resources.
In terms of numbers of people, the global challenges facing social security systems are largely Asian. Because of rapid population aging in Asia, while it accounted for 28% of the world's population aged 60 and older in 1985, that percentage will more than double to 58% in 2050. Provident funds are a prominent feature of retirement income systems in the region-Asia and the Pacific contain the majority of the world's countries with provident funds. These programs typically provide lump-sum benefits, and thus, do not provide annuity protection against outlivingone's resources.
Journal of Aging and Social Policy, 14(1), 2002, pp.23-33.
Publisher:
Routledge
Place of publication:
Philadelphia, USA
... accruing equivalent benefits through an occupational pension plan. Later on this concept was extended to those with individual money purchase pension plans. This article considers a brief history of contracting-out, the principles of contracting-out, some problems associated with contracting-out, the implications of the introduction of stakeholder pensions and State Second Pension, and the latest rebate review and rebate orders. It examines how U.K. pensions policy since 1978 has been based on a partnership between social security and private pension plans.
Contracting-out was introduced in the United Kingdom in 1978 as part of the arrangementsfor the State Earnings-Related Pension Scheme (SERPS) in order to avoid duplication with the existing well-developed defined benefit occupational pension plan sector. Members and sponsors of contracted-out schemes were ableto save on their social security contributions in recognition of the fact that they were accruing equivalent benefits through an occupational pension plan. Later on this concept was extended to those with individual money purchase pension plans. This article considers a brief history of contracting-out, the principles of contracting-out, some problems associated with contracting-out, the implications of the introduction of stakeholder pensions and State Second Pension, and the latest rebate review and rebate orders. It examines how U.K. pensions policy since 1978 has been based on a partnership between social security and private pension plans.
Journal of Aging and Social Policy, 14(1), 2002, pp.67-79.
Publisher:
Routledge
Place of publication:
Philadelphia, USA
Because of the steady aging of the U.S. population and the impending retirement of the large baby boom cohort, the Social Security programme now is in long-term actuarial deficit. The standard twentieth century approach to this actuarial deficit would be to raise payroll taxes enough to pay for anticipated future benefit increases, but for several reasons that approach may not be so popular this time around. The author’s preferred approach is a gradual trimming of long-term benefit growth, plus “add on” individual accounts to provide new saving, for the economy and for the retirement system.
Because of the steady aging of the U.S. population and the impending retirement of the large baby boom cohort, the Social Security programme now is in long-term actuarial deficit. The standard twentieth century approach to this actuarial deficit would be to raise payroll taxes enough to pay for anticipated future benefit increases, but for several reasons that approach may not be so popular this time around. The author’s preferred approach is a gradual trimming of long-term benefit growth, plus “add on” individual accounts to provide new saving, for the economy and for the retirement system.