IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v7y2023i12p1839-1860.html
   My bibliography  Save this article

Qualitative Analysis of Early Pension Withdrawal in Defined Benefit Schemes: A Case National Pension Scheme Authority (NAPSA)

Author

Listed:
  • Dr Sidney Kawimbe

    (ZCAS University)

  • Ms Buumba Banda

    (NAPSA)

Abstract

This paper aims to look at model retirement behavior with a focus on early retirement where there is an option for “buy†outs†. An employer can offer employees generous pension programs if the employees agree on early retirement. Earlier studies have neglected such offers, but in doing so, estimates of the individuals’ responses to financial incentives in a retirement decision are likely to be biased upward. Design/methodology/approach The authors propose an estimation strategy where the retirement decision and the accesses to early retirement pension (ERP) offers are estimated in a simultaneous equation system, yielding unbiased estimates of the model parameters. They apply the model using detailed Swedish register data.

Suggested Citation

  • Dr Sidney Kawimbe & Ms Buumba Banda, 2023. "Qualitative Analysis of Early Pension Withdrawal in Defined Benefit Schemes: A Case National Pension Scheme Authority (NAPSA)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(12), pages 1839-1860, December.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:12:p:1839-1860
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-7-issue-12/1839-1860.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijriss/articles/qualitative-analysis-of-early-pension-withdrawal-in-defined-benefit-schemes-a-case-national-pension-scheme-authority-napsa/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Charles Kivunja & Ahmed Bawa Kuyini, 2017. "Understanding and Applying Research Paradigms in Educational Contexts," International Journal of Higher Education, Sciedu Press, vol. 6(5), pages 1-26, October.
    2. Pedraza Morales,Alvaro Enrique & Fuentes,Olga & Searle,Pamela & Stewart,Fiona Elizabeth, 2017. "Pension funds and the impact of switching regulation on long-term investment," Policy Research Working Paper Series 8143, The World Bank.
    3. Zvi Bodie & Alan J. Marcus & Robert C. Merton, 1988. "Defined Benefit versus Defined Contribution Pension Plans: What are the Real Trade-offs?," NBER Chapters, in: Pensions in the U.S. Economy, pages 139-162, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeffrey R. Brown & Scott J. Weisbenner, 2009. "Who Chooses Defined Contribution Plans?," NBER Chapters, in: Social Security Policy in a Changing Environment, pages 131-161, National Bureau of Economic Research, Inc.
    2. Siegmann, Arjen, 2011. "Minimum funding ratios for defined-benefit pension funds," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(3), pages 417-434, July.
    3. Richard Disney & Carl Emmerson & Sarah Smith, 2004. "Pension Reform and Economic Performance in Britain in the 1980s and 1990s," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 233-274, National Bureau of Economic Research, Inc.
    4. Thomas Url, 2015. "Altersvorsorgesysteme in Europa," WIFO Studies, WIFO, number 57913, April.
    5. Mr. Marc Gerard, 2019. "Reform Options for Mature Defined Benefit Pension Plans: The Case of the Netherlands," IMF Working Papers 2019/022, International Monetary Fund.
    6. Andrew A. Samwick & Jonathan Skinner, 1998. "How Will Defined Contribution Pension Plans Affect Retirement Income?," NBER Working Papers 6645, National Bureau of Economic Research, Inc.
    7. Miyazato, Naomi, 2010. "The optimal size of Japan's public pensions: An analysis considering the risks of longevity and volatility of return on assets," Japan and the World Economy, Elsevier, vol. 22(1), pages 31-39, January.
    8. Rauh, Joshua D. & Stefanescu, Irina & Zeldes, Stephen P., 2020. "Cost saving and the freezing of corporate pension plans," Journal of Public Economics, Elsevier, vol. 188(C).
    9. Davies, James B. & Yu, Xiaoyu, 2013. "Impacts of Cyclical Downturns on the Third Pillar of the RIS and Policy Responses," CLSSRN working papers clsrn_admin-2013-20, Vancouver School of Economics, revised 29 Apr 2013.
    10. Marguerite Schneider, 2000. "When Financial Intermediaries are Corporate Owners: An Agency Model of Institutional Ownership," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 4(3), pages 207-237, September.
    11. Blerina Mucaj, 2006. "Efficiency of Pension Funds Management in OECD Countries: Registered Retirement Savings Plan in Canada," Development Discussion Papers 2006-05, JDI Executive Programs.
    12. Mario Holzner & Stefan Jestl & David Pichler, 2022. "Public and private pension systems and macroeconomic volatility in OECD countries," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(2), pages 131-168, May.
    13. Milevsky, Moshe A. & Young, Virginia R., 2007. "Annuitization and asset allocation," Journal of Economic Dynamics and Control, Elsevier, vol. 31(9), pages 3138-3177, September.
    14. An Chen & Motonobu Kanagawa & Fangyuan Zhang, 2021. "Intergenerational risk sharing in a Defined Contribution pension system: analysis with Bayesian optimization," Papers 2106.13644, arXiv.org, revised Mar 2023.
    15. Srinivas, P.S. & Whitehouse, Edward & Yermo, Juan, 2000. "Regulating private pension funds’ structure, performance and investments: cross-country evidence," MPRA Paper 14753, University Library of Munich, Germany.
    16. Richard A. April & Cookie M. Govender, 2023. "A Mixed Methods Exploration of Measurement, Impact and Strategy for Affirmative Action and Socio-economic Justice in the South African Financial Sector," Management & Economics Research Journal, Faculty of Economics, Commercial and Management Sciences, Ziane Achour University of Djelfa, vol. 5(1), pages 83-105, March.
    17. Susan Kingoina Limisi & John Kipruto & Godfrey Ngeno, 2023. "Utility of Peer Mentorship Programmes in Addressing Disruptive Behaviours Among Secondary Schools Students in Informal Settlements in Nairobi County, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(4), pages 722-737, April.
    18. James Poterba & Joshua Rauh & Steven Venti & David Wise, 2007. "Defined Contribution Plans, Defined Benefit Plans, and the Accumulation of Retirement Wealth," NBER Chapters, in: Public Policy and Retirement, Trans-Atlantic Public Economics Seminar (TAPES), pages 2062-2086, National Bureau of Economic Research, Inc.
    19. Whitehouse, Edward, 2000. "Administrative charges for funded pensions: An international comparison and assessment," MPRA Paper 14172, University Library of Munich, Germany.
    20. Metaferia, Mekonnen Tesfaye & Bennett, Rohan Mark & Alemie, Berhanu Kefale & Koeva, Mila, 2023. "The peri-urban cadastre of Addis Ababa: Status, challenges, and fit-for-purpose prospects," Land Use Policy, Elsevier, vol. 125(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:7:y:2023:i:12:p:1839-1860. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://www.rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.