ABSTRACT
The aging trend of the population in Hong Kong and Macau is evident, so the pension system is especially significant. This research paper uses document analysis and a double-case study as the research method. It uses path dependence and critical moments in historical institutionalism theory as the theoretical tools for political economy analysis. The discussion argues that "the social culture shaped by local politics," "the combination of local economic development and economic structure," and "influence from social structure" are the three main factors that influence the pension systems in Hong Kong and Macau, and are the fundamental reasons for the differences between the pension systems in Hong Kong and Macau. We also conclude that the outbreak of COVID-19 is causing the evolution of the pension systems in both regions to be converging.
ABSTRACT
Sustainable accumulation of pension rights and increasing of income protection for individuals are central problems for any pension system. Public pension provision in the world practice usually has an earnings-related basis. At least one third of OECD countries has basic minimal pension provision, which depends on the socio-economic policy and financial health of the budgetary system. The development of financial and investment models of pension systems since the creation of the first prototype in Germany has been driven by changes in the gender and age structure of the population, globalization and rapid development of technology. The recession of 2008 and the COVID-19 crisis of 2020 highlighted the vulnerabilities of the global financial system and the risks to the financial stability of pension systems. Pension finances deteriorated during these crises due to lost contributions on wages, which have been mainly covered by state budgets. Automatic adjustment mechanisms in pensions are crucial to deal with the problem ageing. The aim of the study is to analyze the evolutionary vector of development of financial and investment models of pension provision, update and analyze risks for their future development, and justify ways to overcome these risks in the long term. The paper concludes that to adapt pension models to the current challenges of the global economy, it is necessary to improve the quality of public services in the field of social security and optimize the costs of their financing via increasing the quality of the public financial management. It is also necessary to use advantages of technological progress in order to minimize the threats of technological growth to pension systems caused by the industrial Revolution 4.0. This direction will require adaptation, effective adjustment of the financial mechanisms of pension systems, and even qualitative changes in the financing models of the pension system in the long term. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
ABSTRACT
Changes in the demographic structure of the population have imposed alterations in the pension systems. In many countries, including Poland, the amount of retirement benefits is highly dependent on life expectancy, which in the case of increases in longevity leads to a decrease in accrued benefits. A dynamic Monte Carlo simulation model was developed to investigate the financial implications of the aging problem in connection with the previously unexpected demographic changes caused by the Covid-19 pandemic on future pension payments. The model uses data from Polish statistical databases. The study distinguishes different life cycle profiles, i.e. women and men with average and minimum wage earnings. Simulation experiments are conducted in two variants. The first variant takes into account the currently registered shortening of life expectancy, while the second variant assumes that life expectancy is continuously lengthening, as it was observed until the outbreak of the Covid-19 epidemic. The simulation results show that the Covid-19 pandemic has a beneficial effect for future retirees, which is reflected in the expected higher replacement rates at retirement. © 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.
ABSTRACT
In the 1980s, Chile’s Decree-Law No. 3500 introduced a new Pension System in Latin America based on individual savings by workers during their working life, thus discarding the distribution model. The system has been implemented in several countries in the region, such as Mexico, Uruguay, Peru, Colombia, Panama, Costa Rica, El Salvador, and the Dominican Republic, so that today in Latin America, two types of systems coexist, one with a public fund and the other with individual savings managed by private companies called Pension Fund Administrators (AFP). Since before the Pandemic, Latin America has had demographic, occupational, and other problems, which have deepened with COVID-19 and have had a negative impact on the economies of various countries in the region, and which have seen pension savings as a support option for overcoming the crisis. Different politicians and experts have analyzed the situation, if this withdrawal of savings from pension funds supports people to overcome one of the worst economic crises in recent years, risking the pension systems to get rid of assets in different markets, mainly where demand is weak and liquidity is low. This article seeks to explain the trend of the AFPs using the HJ-Biplot statistical method. © 2022, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
ABSTRACT
In the context of the continuing outbreak of COVID-19, the Chinese people, together with the people of the world, are suffering from the problems brought about by COVID-19. Besides the goal of adequacy, how to improve affordability, sustainability and robustness of pension system is also the key issue as limited individual contribution capacity and limited financial affordability of governments at all levels, and the need for sustainable level of basic living needs. Therefore, this article focuses on limited supply constraints, analyzes individual contribution capacity, and discusses the relationship between individual contribution capacity and government financial subsidies, then, based on the analysis of limited supply constraints above, this article discusses the needed individual contributions of rural residents in China based on the condition that the multi-level annual basic living needs are satisfied to achieve the goal of adequacy. At last, some suggestions for optimizing the incentive payment policy of rural social pension system in China are put forward. The aims are to promote rural residents to continue to pay their contributions, raise the payment level and extend the payment period within the scope of their abilities, then to achieve the goals of adequacy, affordability, sustainability and robustness. © 2021 Kriedt Enterprises Ltd. All right reserved.
ABSTRACT
The research focuses on the topical problem of the pension system development. The role of digitalization in economic development is revealed. The development of the digital economy and information space imposes new requirements on the level of transparency, accessibility and simplicity of the tax system. The study identifies the main problems of the development of the Russian Federation pension system. In the modern world, risks affecting the national pension system stability are exacerbated by the impact of global trends, problems and threats. COVID-19 has hit hard labor markets and pension mechanisms around the world. The essence of the risks for functioning of the pension system is revealed. In order to generalize the risks, affecting the Russian pension system, a route map of risks has been drawn up. A comparative assessment of the pension systems of Russia and the OECD countries performance was carried out. The analysis of the Melbourne Mercer Global Pension Index (MMGI) 2019 was made. In the course of the comparative analysis of MMGI and the author’s research, the most effective national pension systems were identified. The directions of the entire pension system digital matrix formation and introduction of a digital platform, open and accessible, convenient and understandable for all its participants, have been substantiated. © 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.