Cepar

You are here

Pensions, Retirement and Ageing Seminar Series 2020

Female researcher presenting on ageing population

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 from 12-1pm at UNSW Kensington Campus, in Quadrangle Building, Room 2063, 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. 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.

There is no charge to attend these seminars.


Semester 1, 2020

24 Feb - Piet de Jong (Department of Applied Finance and Actuarial Studies, Macquarie University) "Lockboxes and Glide Paths"

11 March - Geoff Warren (ANU College of Business and Economics) "The ‘Right’ Level for the Superannuation Guarantee: A Straightforward Issue by No Means"

23 March - Ty Leverty (Department of Risk and Insurance, University of Wisconsin-Madison School of Business) "TBA"

6 April Arvid Hoffmann (Faculty of the Professions, Adelaide Business School) "The Financial Vulnerability Trap: Using Latent Transition Analysis to Explore the Dynamics of Consumers’ Financial Vulnerability over Time"

20 April - TBA

4 May - Rafal Chomik (CEPAR, UNSW Sydney) "TBA"


Abstracts

Date: Monday 24th February

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.

 

Date: Wednesday (!) 11th March 

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.

 

Date: Monday 23rd March

Speaker: Ty Leverty (Department of Risk and Insurance, University of Wisconsin-Madison School of Business)

Topic: TBA

 

Date: Monday 6th April

Speaker: Arvid Hoffmann (Faculty of the Professions, Adelaide Business School)

Topic: The Financial Vulnerability Trap: Using Latent Transition Analysis to Explore the Dynamics of Consumers’ Financial Vulnerability over Time

An important question regarding financial vulnerability is not just what makes consumers more or less vulnerable at a particular point in time, but also what drives changes in their vulnerability over time. We explore this question through a Latent Transition Analysis which assesses how individual psychological characteristics predict membership of and transition between states of higher vs. lower financial vulnerability over a three-month period across a nationally representative sample of U.S. consumers. We find that consumers in a state of lower vulnerability are “fragile” in having a relatively high likelihood of moving to a state of higher vulnerability, while those in a state of higher vulnerability are “entrenched” in having a relatively low likelihood of moving to a state of lower vulnerability. We call this pattern of results the “financial vulnerability trap”. We also find that while financial self-efficacy explains state membership, the consideration of future consequences drives state transitions.

 

Date: Monday 4 April

Speaker: Rafal Chomik (CEPAR, UNSW Sydney) 

Topic: TBA

Date: 
Monday, February 24, 2020 - 12:00
End date: 
Monday, February 24, 2020 - 13:00
Location: 
Quadrangle Building, Room 2063, UNSW Sydney