Public Pension Crisis in OECD Countries

The central aim of my bachelor’s thesis is to demonstrate the unsustainability of public pension system in OECD countries in the longer run through the lens of a rigorous theoretical and empirical analysis.

The origins of contemporary public pension schemes date back to 19th century when Bismarck Germany in 1881 first adopted a universal . . . → Read More: Public Pension Crisis in OECD Countries

Perpetually Parsing Pensions

You know this whole debate over whether to get the pension fund to 50% funding may not matter as much as it may seem.  Or at least the problem may be so much worse than we think and that the numbers we assume are good turn out to be wildly optimistic.

The government accounting folks, . . . → Read More: Perpetually Parsing Pensions

Will the Elderly Poor Fare Better Under Pensions Means Tests?

I ended my last post suggesting that it is absurd to provide pensions that are not subject to means tests because this involves taxing people of working age more heavily in order to add unnecessarily to the incomes of wealthy retirees. This raised the question of whether the elderly poor are likely to fare . . . → Read More: Will the Elderly Poor Fare Better Under Pensions Means Tests?

Does Wagner’s Law Make Sense?

Wagner’s law refers to the proposition of Adolph Wagner (1893) that there is a positive relationship between the level of economic development and the size of government. The underlying idea seems to have been that the demand for services provided by government tends to rise strongly as average incomes rise.

I think Wagner’s law . . . → Read More: Does Wagner’s Law Make Sense?

Roger Ferguson (President and CEO, TIAA-CREF) on the Retirement Policies of the 21st century

I like this and I definitely think that you should have a look. It raises a lot of interesting and important issues although it is exclusively framed in a US context (not strange thinking of the source).

Untitled from NBER on Vimeo.

The basic message is pretty simple. People should save more and be . . . → Read More: Roger Ferguson (President and CEO, TIAA-CREF) on the Retirement Policies of the 21st century

Unfair Coin Ban for SMSFs

The Cooper Super System Review has been looking at the issue of collectables held in Self Managed Superannuation Funds (SMSFs) and has a preliminary recommendation that:

a) the acquisition of collectables and personal use assets by SMSF trustees be prohibited; b) SMSFs that own collectables or personal use assets be provided a . . . → Read More: Unfair Coin Ban for SMSFs

Pension Systems- A Growing Fiscal Bomb

From today’s edition of Economist (link):

The Household Initiative Plan to Rescue Real Estate

Here’s a new plan for America’s housing problem called the Household Initiative Plan. It’s called that because of all the plans out there it is the only one that asks little of the Treasury, Federal Reserve, or other government agencies besides non-interference in what millions of responsible householders could do for themselves on their . . . → Read More: The Household Initiative Plan to Rescue Real Estate

America’s Aging Workforce: It’s Time for Employers to Accept Reality

The current financial crisis in the U.S. is hitting everyone hard, perhaps not least the older population. Many in this age group will have taken early retirement in recent years and may now be starting to feel the pinch due to unexpected price rises. Some of these seniors, along with others who just miss . . . → Read More: America’s Aging Workforce: It’s Time for Employers to Accept Reality

Never Mind Social Security: Are Your Retirement Pensions at Risk, Too?

As America grows old, it is faced with a new threat – that of retirement poverty. Americans are not saving enough for retirement. In an attempt to combat this new threat of retirement poverty, in August 2006 President Bush signed into law the Pension Protection Act. This act was passed to ensure that companies’ . . . → Read More: Never Mind Social Security: Are Your Retirement Pensions at Risk, Too?