IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/97670.html
   My bibliography  Save this paper

Analyzing non-contributory social pension programs

Author

Listed:
  • Prasetyono, Pipin

Abstract

Due to higher life expectancy and declining fertility which cause an accelerated demographic transition, there was an increasing trend in population ages of 65 and above, as a percentage of total population in the last three decades, from 5.88 percent in 1985 to 8.27 percent in 2015. In 1994, the World Bank suggested three pillars of old age security programs which are non-contributory (basic pension), contributory (forced savings) and voluntary savings to provide help the old as well as helping the broader economy. By examining Australia’s experience in implementing pension programs, this paper attempts to (1) identify the advantages and disadvantages of non-contributory pension programs, and (2) provide an empirical comparison between universal and mean-tested pension programs. This paper argues that a non-contributory, means-tested retirement scheme, as has been implemented by Australia, would better support the old-age population by better targeting the beneficiaries, relatively low cost, and enhancing fairness among beneficiaries.

Suggested Citation

  • Prasetyono, Pipin, 2017. "Analyzing non-contributory social pension programs," MPRA Paper 97670, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:97670
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/97670/1/MPRA_paper_97670.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yu-Wei Hu & Fiona Stewart, 2009. "Pension Coverage and Informal Sector Workers: International Experiences," OECD Working Papers on Insurance and Private Pensions 31, OECD Publishing.
    2. Julie Agnew, 2013. "Australia’s Retirement System: Strengths, Weaknesses, and Reforms," Issues in Brief ib2013-5, Center for Retirement Research.
    3. Willmore, Larry, 2007. "Universal Pensions for Developing Countries," World Development, Elsevier, vol. 35(1), pages 24-51, January.
    4. Jessica K. M. Johnson & John B. Williamson, 2006. "Do universal non‐contributory old‐age pensions make sense for rural areas in low‐income countries?," International Social Security Review, John Wiley & Sons, vol. 59(4), pages 47-65, October.
    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. Gregori Galofré-Vilà & Martin McKee & David Stuckler, 2022. "Quantifying the mortality impact of the 1935 old-age assistance," European Review of Economic History, European Historical Economics Society, vol. 26(1), pages 62-77.
    2. Pak, Tae-Young, 2020. "Social protection for happiness? The impact of social pension reform on subjective well-being of the Korean elderly," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 349-366.
    3. Aleksandra Kolasa, 2022. "The long-term impact of quasi-universal transfers to older households," Working Papers 2022-28, Faculty of Economic Sciences, University of Warsaw.
    4. Willmore, Larry, 2014. "Old age pensions in Mexico: Toward universal coverage," MPRA Paper 53155, University Library of Munich, Germany.
    5. John Beshears & James J. Choi & Joshua Hurwitz & David Laibson & Brigitte C. Madrian, 2015. "Liquidity in Retirement Savings Systems: An International Comparison," American Economic Review, American Economic Association, vol. 105(5), pages 420-425, May.
    6. David A. Hurtado & Philipp Hessel & Mauricio Avendano, 2017. "The hidden costs of informal work: lack of social protection and subjective well-being in Colombia," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 62(2), pages 187-196, March.
    7. Leandro Medina, 2018. "Assessing Fiscal Risks in Bangladesh," Asian Development Review, MIT Press, vol. 35(1), pages 196-222, March.
    8. Ren, Junqiushi & Xiong, Deyin, 2023. "Do social assistance programs promote the use of clean cooking fuels? Evidence from China's new rural pension scheme," Energy Policy, Elsevier, vol. 182(C).
    9. Leonardo Villar & Alejandro Becerra & David Forero, 2017. "Propuesta y estimación de los costos económicos de extender la cobertura del sistema pensional colombiano," Working Papers Series. Documentos de Trabajo 15727, Fedesarrollo.
    10. Cruz-Martinez, Gibran, 2019. "Older‐Age Social Pensions and Poverty: Revisiting Assumptions on Targeting and Universalism," SocArXiv y9uk6, Center for Open Science.
    11. Doling, John & Vandenberg, Paul & Tolentino, Jade, 2013. "Housing and Housing Finance—A Review of the Links to Economic Development and Poverty Reduction," ADB Economics Working Paper Series 362, Asian Development Bank.
    12. Renuka Sane & Susan Thomas, 2015. "In Search of Inclusion: Informal Sector Participation in a Voluntary, Defined Contribution Pension System," Journal of Development Studies, Taylor & Francis Journals, vol. 51(10), pages 1409-1424, October.
    13. Nikolić Milena & Rakić Biljana, 2016. "Determinants of the Level of Contributions for Pension and Disability Insurance: The EU and Serbia," Economic Themes, Sciendo, vol. 54(1), pages 61-82, March.
    14. Frijters, Paul & Johnston, David W. & Shields, Michael A. & Sinha, Kompal, 2015. "A lifecycle perspective of stock market performance and wellbeing," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 237-250.
    15. Barrientos, Armando, 2012. "What is the Role of Social Pensions in Asia?," ADBI Working Papers 351, Asian Development Bank Institute.
    16. 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.
    17. World Bank, 2013. "Europe 2020 Romania : Evidence-based Policies for Productivity, Employment, and Skills Enhancement," World Bank Publications - Reports 16255, The World Bank Group.
    18. Emma Aguila & Mariana López-Ortega & Luis Miguel Gutiérrez Robledo, 2018. "Non-contributory pension programs and frailty of older adults: Evidence from Mexico," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-19, November.
    19. Alexander M. Danzer & Lennard Zyska, 2023. "Pensions and Fertility: Microeconomic Evidence," American Economic Journal: Economic Policy, American Economic Association, vol. 15(2), pages 126-165, May.
    20. Sarmistha Pal & Robert Palacios, 2011. "Understanding Poverty among the Elderly in India: Implications for Social Pension Policy," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 1017-1037.

    More about this item

    Keywords

    pension; retirement;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

    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:pra:mprapa:97670. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.