The Pensions, Retirement and Ageing Seminar Series is jointly hosted by CEPAR and the School of Risk & Actuarial Studies at UNSW Sydney.
It takes place on a Monday (or Wednesday) from 12-1pm and provides an excellent opportunity to network with pensions and superannuation experts from Australia and overseas. This is an interdisciplinary group with backgrounds in economics, actuarial studies, finance, psychology, law, accounting, demography, marketing, medicine and related fields. We invite attendance of participants from other universities as well as from industry and government who are interested in both theoretical and applied research on pensions, retirement and ageing.
We also welcome presenters who are early career academics or practitioners. There is no charge to attend these seminars.
In response to the current COVID-19 situation, upcoming seminars are planned to be held online as webinars. All seminar registrants will be notified via email. Please contact Inka Eberhardt if you are interested in presenting or want to be added to the Pensions, Retirement and Ageing Seminar Series mailing list.
We wish to express our best wishes to the community during this challenging time.
Term 1, 2020
11 March - Geoff Warren (ANU College of Business and Economics) "The ‘Right’ Level for the Superannuation Guarantee: A Straightforward Issue by No Means"
(Location: UNSW Kensington Campus, in Quadrangle Building, Room 2063)
6 April - Katja Hanewald (CEPAR, UNSW School of Risk and Acturial Studies) "Long-term Care Insurance Financing using Home Equity Release: Evidence from an Experimental Study"
20 April - TBA
4 May - Brooke Brady (UNSW Ageing Futures Institute, CEPAR) "The Development of a New App-based Assessment of Shared Financial Decision Making"
18 May - TBA
Speaker: Piet de Jong (Department of Applied Finance and Actuarial Studies, Macquarie University)
Topic: Lockboxes and Glide Paths
If you are an average Australian you will immediately spend your super when you retire, go on the age pension, and, if aged care is needed, get the government to pony up. With more old people, government age support spending is likely to rocket. Standing idly by is a bloated and inefficient super "helpers" industry, exploiting a captive, ill-informed customer base, corroding retirement savings with fees, and adding no value. I you want to stand on your own retired feet, you won’t find the one product you’ll likely crave: fairly priced pensions. This submission proposes: 1) employees pay for their future age pension and aged care while employed, saving the government an estimated $30 Bn pa; 2) the winding down of the super industry saving an estimated $1,500 pa per employee and doubling retirement incomes; 3) the super system to be properly choreographed so that retirees can buy fairly priced pensions.
Speaker: Geoff Warren (ANU College of Business and Economics)
Topic: The ‘Right’ Level for the Superannuation Guarantee: A Straightforward Issue by No Means
We deploy a stochastic life-cycle model to examine how differing levels of the superannuation guarantee (SG) impact on the welfare of individual Australians under existing superannuation, tax and pension eligibility rules. Our main focus is the effect of various assumptions on the optimal SG, emphasising the role of income and the retirement objectives of the individual. The analysis supports estimating the gains and losses from changing the SG for various individuals, and associated impacts on net government revenue. We find the optimal SG to vary substantially with income and objectives. While our baseline analysis indicates a SG of below the current level of 9.5%, higher estimates emerge if access to the Age Pension is excluded, and if the SG is used as a mechanism to self-insure against living to a very old age, being forced into early retirement, or incurring lower investment returns. We conclude that the case for raising the SG above 9.5% depends on the underlying assumptions, with the policy objectives that the SG is intended to achieve being critical.
Speaker: Katja Hanewald (CEPAR, UNSW School of Actuarial Studies and Risk)
Title: Long-term Care Insurance Financing using Home Equity Release: Evidence from an Experimental Study
Abstract: Population ageing is a global trend and many countries including China face increasing pressures to provide long-term care services for the elderly. We explore new mechanisms to fund long-term care using housing wealth. We conduct and analyze an experimental online survey fielded in China that assesses the potential demand for new financial products that allow individuals to access their housing wealth to buy long-term care insurance. We find in our sample of 1,200 Chinese homeowners aged 45-64 that the stated demand for long-term care insurance increases when individuals can use housing wealth in addition to savings to purchase long-term care insurance. Individuals prefer to access housing wealth via reverse mortgage loans rather than via home reversion, which is a partial sale of housing wealth. Our results inform current policy reforms in China which aim at developing the private market for health and long-term care insurance products