American Journal of Political Science, vol. 53, 2009, p. 710-725
The US Social Security (state pension) programme offers each new generation a lower rate of return on their contributions, while remaining financially unsustainable in its present form. Social Security is not simply an insurance programme funded by each generation equally. The benefits currently provided to the elderly also represent an irrevocable intergenerational transfer. The author develops a formal model explaining why a majority of voters who care about their descendants might rationally accept the prospect of a future retrenched Social Security programme, while insisting on the preservation of benefits for themselves. The explanation is rooted in parents' optimistic, yet rational, expectations about their children's financial future as adults.
Global Social Policy, vol. 9, 2009, p. 273-280
The government President Cristina Fernandez of Argentina has nationalised the pension scheme previously privatised by President Mennem. The state has regained control over the pension savings accumulated by Argentinians and in return has offered them the guarantee of a decent lifelong pension. The move has been justified on the grounds that: 1) the privatised system delivered pensions that were very low; 2) the world economic crisis of 2008/09 has wiped out a considerable part of the funds; and 3) pension scheme administrators have swindled contributors.
H. Litwin, L. Achdut and I. Youssim
Journal of European Social Policy, vol. 19, 2009, p. 245-257
Delayed retirement is a reform measure aimed at helping to ensure the financial sustainability of pension systems in many countries, but it is unpopular with workers. There is a need to better understand the prevalent opinions about delayed retirement among older workers, and to identify the factors which may underlie their unwillingness to institutionalise a later exit from active employment. In 2004, the Israeli Knesset approved a graduated delay in the age of eligibility for receipt of pension benefits. This article uses data from the Israeli sample of the Survey of Health, Ageing and Retirement in Europe to explore factors which predict support for delayed retirement among older workers. Respondents who supported delayed retirement tended to be better educated, more confident in their present workplace, and to believe that it would lead to improved health and greater family solidarity.