IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/97670.html

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. Julie Agnew, 2013. "Australia’s Retirement System: Strengths, Weaknesses, and Reforms," Issues in Brief ib2013-5, Center for Retirement Research.
    2. Willmore, Larry, 2007. "Universal Pensions for Developing Countries," World Development, Elsevier, vol. 35(1), pages 24-51, January.
    3. 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.
    4. 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.
    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. Guo, Naijia & Huang, Wei & Wang, Ruixin, 2025. "Public pensions and family dynamics: Eldercare, child investment, and son preference in rural China," Journal of Development Economics, Elsevier, vol. 172(C).
    3. Cruz-Martinez, Gibran, 2021. "Universal Social Pensions Are Unaffordable … Not! Testing the Unaffordability Hypothesis in Latin America and the Caribbean," SocArXiv ne9rw, Center for Open Science.
    4. 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.
    5. Aleksandra Kolasa, 2025. "On the effectiveness of quasi-universal transfers to older households: the case of Poland," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 23(1), pages 247-277, March.
    6. Gibrán Cruz‐Martínez, 2019. "Older‐Age Social Pensions and Poverty: Revisiting Assumptions on Targeting and Universalism," Poverty & Public Policy, John Wiley & Sons, vol. 11(1-2), pages 31-56, July.
    7. Emma Aguila & Jung Ho Park & Alma Vega, 2020. "Living Arrangements and Supplemental Income Programs for Older Adults in Mexico," Demography, Springer;Population Association of America (PAA), vol. 57(4), pages 1345-1368, August.
    8. 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.
    9. 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.
    10. 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.
    11. Willmore, Larry, 2014. "Old age pensions in Mexico: Toward universal coverage," MPRA Paper 53155, University Library of Munich, Germany.
    12. Navneel Shalendra Prasad & Amit Prakash & Nikeel Nishkar Kumar, 2025. "Informal workers’ perceptions of retirement planning in developing countries," PLOS ONE, Public Library of Science, vol. 20(4), pages 1-19, April.
    13. Aarón Salinas-Rodríguez & Ma Del Pilar Torres-Pereda & Betty Manrique-Espinoza & Karla Moreno-Tamayo & Martha María Téllez-Rojo Solís, 2014. "Impact of the Non-Contributory Social Pension Program 70 y más on Older Adults’ Mental Well-Being," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-10, November.
    14. Blackburn Robin, 2011. "The Case for a Global Pension and Youth Grant," Basic Income Studies, De Gruyter, vol. 6(1), pages 1-12, October.
    15. 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.
    16. Vandeninden, Frieda, 2012. "A Simulation of Social Pensions in Europe," MERIT Working Papers 2012-008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    17. Leandro Medina, 2018. "Assessing Fiscal Risks in Bangladesh," Asian Development Review, MIT Press, vol. 35(1), pages 196-222, March.
    18. 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).
    19. Jaafar, Roslan & Daly, Kevin James & Mishra, Anil V., 2019. "Challenges facing Malaysia pension scheme in an era of ageing population," Finance Research Letters, Elsevier, vol. 30(C), pages 334-340.
    20. Zhu, Rong, 2021. "Retirement and voluntary work provision: Evidence from the Australian Age Pension reform," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 674-690.

    More about this item

    Keywords

    ;
    ;

    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.