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The aim of this paper is to propose and analyse policies capable of generating left‐skewed pension distributions. Such policies can deliver large pension values with high probability and hence are of interest to practical fund managers.

The paper uses a computational method capable of solving stochastic optimal control problems. The optimal strategies obtained through the method are used to simulate dynamic portfolio management.

The paper finds that optimisation of locally non‐concave performance measures has produced left‐skewed payoff distributions of small VaR and CVaR. The distributions remain left‐skewed for relatively large values of the diffusion parameter.

On the basis of the findings, it would seem beneficial for real‐world fund managers to implement this kind of optimising “cautious‐relaxed” policy.

A novel non‐concave performance measure has been proposed in the paper to describe a portfolio manager's aim. The computed “cautious‐relaxed” policies have been shown to realise this aim.

Welfare states are sets of rules and policies that redistribute resources across social classes and across generations. In nearly all western nations, social spending on the aged has surpassed spending on all other age groups combined. In 1992 alone, spending in the U.S. on Social Security topped $250 billion and on Medicare $130 billion.

This study aims to explore the views of pension beneficiaries and fund managers regarding greater involvement and investment autonomy and the attitudes toward diverse responsible investment criteria. The conventional form of investing is usually vulnerable to high financial market volatility events and financial crises, and most importantly, it has proven insufficient in addressing important social issues. A newly introduced investment culture known as impact investing strives for social gains in the long term rather than the maximization of financial returns by aiming to tackle social problems. However, some in the field claim that implementing such investment policies compromises the fiduciary responsibility of pension funds’ trustees to manage trust funds in the best interest of beneficiaries.

This study uses qualitative methods to explore the perception of proposed pension policies, such as beneficiaries’ greater involvement in determining pension investment policies that can have a positive long-term impact on their lives and on the provision of investment autonomy. For this purpose, the study investigates beneficiaries’ positions regarding responsible investment criteria from a freedom-of-choice perspective. The study sample consists of members and managers of a Dutch pension administrative organization with a cooperative structure. Three semi-structured, homogeneous discussions with focus groups containing between seven and nine participants each are conducted. The data are coded both deductively and inductively, following the framework approach, which is a qualitative data analysis method.

Participants demonstrate positive attitudes toward greater involvement and freedom of choice. However, the findings also indicate that members and pension fund managers have different views regarding responsible investment criteria. Members have more favorable attitudes toward responsible investment than do managers.

This research is limited to focus group discussions with managers and members in the Dutch healthcare sector.

How little the current pension system matches people’s investment preferences is a matter of concern, and the main implications of this research thus center upon designing a more democratic pension system for the future. Greater involvement by pension fund beneficiaries, whose roles are currently limited, would help legitimize responsible investing. This research implies that pension policies should be designed to align with the preferences of pension fund beneficiaries and be accompanied by diverse intervention strategies.

Pension reforms that encourage pension beneficiaries to exert greater influence in determining pension policy will help shrink the democratic deficit in collective pensions.

This study contributes to the literature on pension fund governance and long-term responsible investing by examining the attitudes toward impact and sustainable investments and by making suggestions for future research. To the best of the authors' knowledge, this study is the first to investigate the attitudes of pension fund participants toward targeted impact investments.

Population ageing, extended coverage of beneficiaries and rise in benefit levels of a public-funded universal social pension scheme (USPS) for elderly individuals may exert fiscal pressures on India’s General Government. Using accounting frameworks, this paper aims at an assessment of public expenditure requirements of USPS scenarios in the short term and their long-term implications for fiscal sustainability.

Short-term public expenditure requirements are quantified for the current pension scheme and proposed USPS scenarios, if pension benefits are adjustable for official poverty line, per capita income, the inflation rate and income elasticity of public pension expenditure. Long-term fiscal sustainability is determined by the methodology of generational accounting.

Public expenditure requirements for the USPS scenarios are remarkably higher as compared to the current expenditure on the Indira Gandhi National Old Age Pension Scheme (IGNOAPS). Short-term analyses offer economic justifications for an increase in pension benefits either by a single adjustment factor or combined adjustment factors but at a cost of remarkable increase in public expenditure requirements. Long-term analyses show that the IGNOAPS and proposed USPS scenarios are fiscally sustainable but sensitive to five parameters (productivity growth, inflation rate, discount rate, income elasticity public pension expenditure and income elasticity of health expenditure). A policy mix of these parameters leads to fiscal sustainability of the IGNOAPS and proposed USPS scenarios with differential impacts on inter-generational distribution of welfare by tax and transfer adjustments.

Application of the generational accounting methodology is new for India’s pension economics and may have applicability and relevance for future extensions and analyses of other fiscal policy issues. This paper sets a benchmark for such extensions and applications.

The analyses and implications offer economic justifications for increase in levels of pension benefits by the current pension scheme and proposed USPS scenarios, introduction of sustainable USPS scenarios under current fiscal policies and choice of design parameters for a fiscally sustainable USPS.

Social pensions have implications for providing income security and livelihood benefits for all elderly civilians in society.

The paper adds to the existing knowledge on economic analyses and fiscal implications of India’s old age pension policies in general and social pension policies in particular. Subject to the comparability of socio-economic structures and pension programmes, the methodology and public policy analyses of this paper may be of relevance and applicability for developing countries in Asia.

This article aims to link discussions of the role of earnings-related pension measures with time in Hong Kong (HK) and the United Kingdom (UK). It presents a new conceptual “time-based framework” to explore two related types of government response to the way people accumulate pension incomes through participation in paid work. The first is to consider governments' perceptions of appropriate time in work and retirement. The second is to consider how governments use pension measures to influence the connection between the amount of time people spend in paid work and retirement.

This is a conceptual paper. The time-based framework is developed using literature concerning discretionary time and the social construction of time. To explore the empirical significance of this framework, the authors discuss how it can be applied to the analysis of earnings-related pension measures in HK and the UK.

The evidence generated from the discussion of the earnings-related pension measures in HK and the UK shows that pension policies can serve both as a financial and time instrument. At the same time as influencing the connection between the amount of time people spend in paid work and the pensions they can accumulate, pension policies can be used to convey the government's views on important time issues, namely the appropriate length of time in work and retirement, and the relative value of the time spent in paid work and providing informal care.

A new framework is developed to explore the connection between the studies of earnings-related pension measures and time, which is an understudied area.

The need for a universal rural pension system has been heightened by demographic changes in rural China, including the rapid aging of the nation’s rural population and a dramatic decline in fertility. In response to these changes, China’s Government introduced the New Rural Social Pension Program (NRSPP) in 2009, a voluntary and highly subsidized pension scheme. The purpose of this paper is to assess the participation of rural farmers in the NRSPP. Furthermore, the authors examine whether the NRSPP affects the labor supply of the elderly population in China.

This paper uses household-level data from a sample of 2,020 households originating from a survey conducted by the authors in five provinces, 25 counties, and 101 villages in rural China. Using a probit model and conducting correlation analysis, the authors demonstrate the factors affecting the participation and the impact of NRSPP on labor supply of the rural elderly.

The results show there are several factors that are correlated with participation, such as specific policy variant in force in the respective household's province, the size of the pension payout from government, the age of sample individuals, and the value of household durable assets. Specifically, different characteristics of NRSPP policy implementation increase participation in China’s social pension program. The results suggest that the introduction of the NRSPP has not affected the labor supply of the rural elderly, in general, although it has reduced participation for the elderly who were in poor health.

Several previous studies have covered the NRSPP. However, all previous studies were based on case studies or just focused on a small region, and for this reason the results cannot reflect the populations and heterogeneity of rural areas. Therefore, a data set with a large sample size is used in this paper to provide a new perspective to fully understand the participation of NRSPP and its impacts on rural households. This paper will make an update contribution to the literature in the area of pension programs in China.

The purpose of this paper is to analyse how firm size impacts pension workforce coverage with a particular focus on automatic enrolment (AE) to pension plans in small organisations.

The paper examines the alignment of government AE interests with those of small employers, their employees and pension providers to better understand how firm size impacts pension workforce coverage.

The alignment of interests between stakeholders (government, pension providers, employers and employees) differs between large and small organisations, and empirical findings from large organisations cannot be assumed to apply in small organisations.

The paper calls attention to the need for future empirical research and identifies a number of research questions for further analysis to examine how AE impacts pension participation in small organisations and advance the field.

The policy of automatically enroling employees into occupational pension plans, recently legislated for all eligible workers in the UK and under consideration in the USA and Ireland, was developed from research conducted in a small number of large organisations. Pension coverage is particularly inadequate for the large number of employees working in small organisations (1–49 employees). However, little research attention has been focussed on pensions in small organisations with pension policy makers assuming that legislated AE will work as effectively in small organisations as it did in large organisations. This paper addresses this gap in the field.

Pension theory suggests and empirical tests indicate that optimal funding levels for defined benefit plans are determined on the basis of risk, taxes, and capital availability. This study examines whether federal pension and tax legislation enacted in 1986 and 1987 significantly altered the role of risk, taxes, and capital availability as determinants of corporate pension funding policy. Regression tests relating funding levels to these variables were conducted on a sample of pension plans, separately, for each of the reporting years, 1985 (before enactment of the legislation) and 1989 (after enactment of the legislation). Pension risk and tax exposure variables, significant in explaining funding levels in 1985, were not significant in 1989. Pension risk and tax factors under this new regime play a significantly diminished role, if any, in determining funding level policy for defined benefit plans. Evidence is provided that current pension funding is dependent upon the variability of common equity returns, and thus indicate that the pension funding decision is made in the same context as any other capital allocation decision.

This article explores the link between defamilisation studies and studies of the adult worker model and discusses the mixed implications that government strategies for supporting the adult worker model have for defamilisation. The adult worker model emphasises that all adult men and women ought to engage in formal employment; defamilisation studies stress the importance of enhancing women's chances of choosing (not) to perform important family roles such as the receiver of financial support and the care provider.

Two new strategies (“condition building” and “rewarding/penalising”) for promoting the adult worker model are identified based on literature review; their empirical significance is explored through an examination of comparative data concerning early childhood education and care policies (ECEC) and reforms in pension age in 14 countries.

The evidence shows that promoting the adult worker model does not necessarily benefit all women. While the 14 countries provide ECEC to varying extents, the increase in pension age in most countries shows that governments adopt a “rewarding/penalising” strategy for promoting the adult worker model by allocating major welfare based on people's labour force participation. These pension reforms may generate a negative impact on women's chances of attaining financial autonomy.

This study presents two new strategies for promoting the adult worker model and shows the empirical significance of these strategies based on comparative data. It also highlights the importance of searching for alternative concepts, namely economic defamilisation, for guiding pension reforms.

The transition from large to small working age cohorts and perpetually increasing longevity presents major challenges to pension systems around the world. In this context, the Danish system has been highlighted as particularly adequate and sustainable, although often developed more as element in macro-economic and fiscal policies than pension visions and certainly enabled and bolstered through other policies, such as fixed exchange rates, debt reduction, wage restraint, employment maximation and tax reform. The combined effect of six distinctive pension policy features places Danish pensions in the super-league of national systems: (1) a generous minimum pension providing all residents with basic old age security; (2) progressive redistribution resulting from the integration of public and private pension benefits; (3) high occupational pension coverage, with sizable contributions offering immediate membership, vesting and full portability of rights; (4) the tax regime, where investment return taxation substantially reduces the fiscal pressure from tax-exempting gross income in the build-up period and deferral of income tax until benefits are paid out, secures a revenue windfall at the height of ageing; (5) the linking of pensionable ages to life expectancy, which aims to lower pension costs, increases labour supply, growth and tax revenue and (6) the regime for third pillar schemes preventing their use in tax planning. Although the Danish pension experience has its obvious peculiarities, lessons for other governments can be found in the public‒private benefit integration, the tax regime, the life expectancy indexing of pensionable ages and the use of pensions in economic policies.