Get Ageing, Health and Pensions in Europe: An Economic and PDF

By Lans Bovenberg, Asghar Zaidi, A. Van Soest, Arthur H O Van Soest

Supplying an overview of the longer term examine demanding situations for economists and social scientists touching on inhabitants ageing, pensions, overall healthiness and social care in Europe, this publication examines how medical examine grants state-of-the-art facts on source of revenue security and health of the aged, and labour markets and older staff.

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Example text

As far as the methodological approach is concerned, more effort is indeed required to integrate other disciplines. Economic behavioural assumptions have long been challenged by psychologists but, until recently, to little effect. Things have begun to change, however: results have been obtained through joint efforts among scholars from different disciplines, also studying the neural circuits of the brain, and preliminary testable implications have resulted from more rigorous analyses. Psychological and sociological features (for example, the tendency of people to procrastinate; the status quo bias; the lack of financial literacy; the role of the family), however, have not yet been incorporated into rigorous theoretical models, with clear-cut empirical predictions.

2006), who argue that 43% of households are at Adequacy of Savings for Old Age in Europe 21 risk of not being able to maintain their standard of living in retirement. 3 A different strand of literature – which also provides some evidence on European countries such as Germany, Italy and the UK – studies the ‘consumption drop’: in other words, whether or not consumption falls around the time of retirement, and for what reason. This finding would provide prima facie evidence against the theoretical predictions of the life-cycle model, and could be interpreted as evidence of inadequate retirement saving.

Lusardi et al. (2009) devised a seven-step planning aid that describes to new hires in a large not-for-profit institution what they have to do to open a supplementary retirement account. In addition to breaking down the enrolment process into simple steps, the aid provides information about the pension scheme, such as the minimum and maximum amount that employees can contribute, the three pension providers employees have to choose from, and the rules of the on-line enrolment process. Consistent with the fact that many employees lack even basic information about pensions and often claim they do not know where to start when considering retirement saving decisions, this programme resulted in a sharp increase in supplementary retirement accounts.

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