The Retirement Income System and the Risks Faced by Canadian Seniors
AbstractIn this paper, we use a risk framework to analyze the risks seniors face and discuss the success of Canadaâ€™s retirement income system in insuring against these risks. We focus on four types of risk: (i) the risk of low income at the onset of retirement, (ii) longevity risk, (iii) business cycle risk, and (iv) decision-making risk. The research conducted by CLSRN researchers and others leads us to conclude that, overall, Canadaâ€™s retirement income system successfully mitigates against most risks facing Canadian seniors. Important gaps remain, however. Some demographic groups remain at higher risk of poverty at the onset of retirement. Risks of longevity and widowhood are not fully insured. Private savings are subject to financial return risk. The complexity of some retirement income programs makes it difficult for seniors to plan their retirement income optimally.
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Bibliographic InfoPaper provided by Vancouver School of Economics in its series CLSSRN working papers with number clsrn_admin-2013-27.
Length: 56 pages
Date of creation: 29 Apr 2013
Date of revision: 29 Apr 2013
Contact details of provider:
Web page: http://www.clsrn.econ.ubc.ca/
Seniors; Retirement; Public Policy; Pensions; Risk;
Find related papers by JEL classification:
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-AGE-2013-11-22 (Economics of Ageing)
- NEP-ALL-2013-11-22 (All new papers)
- NEP-RMG-2013-11-22 (Risk Management)
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