Utility Analysis and the Consumption Function: An Interpretation of Cross-Section Data

This paper presents new empirical evidence in support of the view that a significant fraction of total saving is motivated solely by the desire to leave bequests. Specifically, I find that Social Security annuity benefits significantly raise life insurance holdings and depress private annuity holdings among elderly individuals. These patterns indicate that the typical household would choose to maintain a positive fraction of its resources in bequeathable forms, even if insurance markets were perfect. Evidence on the relationship between insurance purchases and total resources reinforces this conclusion.

How Strong are Bequest Motives? Evidence Based on Estimates of the Demand for Life Insurance and Annuities

Why Should Older People Invest Less in Stocks than Younger People

The HILDA Survey aims to provide a new type of social statistics for Australia, and to investigate new methods of measuring change and social trends. Volume 4 of the Statistical Report is based on the first six waves of data collected by the HILDA Survey and comprises two parts. Part A contains short articles that provide an annual update of changes in key aspects of life in Australia, covering the four main areas of HILDA, namely: Households and family life; Incomes and economic wellbeing; Labour market outcomes; and Life satisfaction, health and wellbeing. Part B of the Report contains feature articles on a variety of topics, including a number of articles utilising the household wealth data collected in 2006.

Families, incomes and jobs: volume 9

Across the world, pension systems and their reforms are in a constant state of flux driven by shifting objectives, moving reform needs, and a changing enabling environment. The ongoing worldwide financial crisis and the adjustment to an uncertain'new normal'will make future pension systems different from past ones. The objectives of this policy review paper are threefold: (i) to briefly review recent and ongoing key changesthat are triggering reforms; (ii) to outline the main reform trends across pension pillars; and (iii) to identify a few areas on which the pension reform community will need to focus to make a difference. The latter includes: creating solutions after the marginalization or, perhaps, demise of Bismarckian systems in countries with high rates of informality; keeping the elderly in the labor market; and addressing the uncertainty of longevity increases in pension schemes.

Global pension systems and their reform : worldwide drivers, trends, and challenges

Australians have three principal sources for retirement funding - the Age Pension, individual superannuation and individual savings outside of the superannuation umbrella. The Age Pension, a non-contributory payment that, alone, provides only for a modest lifestyle, is means tested for both assets and income, with the provision available to receive either a full or part pension. Most Australians also hold a personal superannuation account into which is contributed a mandatory percentage of labour income, known as the Superannuation Guarantee. These accounts, for which the individual is responsible for the investment strategy and for which the individual bears the risk, can also receive discretionary, tax-advantaged contributions.

Eileen O'Leary

Papers

Optimisation of retirement benefits for Australians