PBSS Webinar: Pension Systems in Developing Countries
April 28, 2021
10:00 - 11:00 EDT (click here to check your local time)
Today, people’s greatest financial concern is no longer paying their short-term bills or credit-card debt. According to the new study by Zurich Insurance Group and the University of Oxford (2019), ‘retirement security is the top financial worry’ for workers in 14 out of 16 countries. Likewise, recent surveys on old- age income suggest that nearly half of the respondents from different parts of the world do not feel secure about having a comfortable retirement (AARP Foundation, 2018; Credit Suisse, 2020).
While a lack of retirement savings has turned out to be a global phenomenon, most studies cover the design of pension systems in developed countries, which face relatively few challenges compared to developing ones. Moreover, from a handful of papers on developing regions, there is a tendency to discuss pension related issues in the context of specific countries or topics. To this end, this study aims to provide an overall and detailed picture of the public and private pension systems in the developing world, including the present challenges and future directions.
The first part of the paper presents an overview of public pensions in developing countries. It illustrates the impact of ageing on sustainability and the adequacy of pay-as-you-go plans, along with some suggestions for the future of state pensions. In the second part, the paper focuses on private pension systems in the developing world and discusses the reasons for low pension savings with respect to the issues of coverage, contribution, and investment performance. This section also concludes by proposing certain recommendations for private pensions in the light of financial as well as behavioural and technological developments.
With an introduction in Ideas to Mitigate the Global Pension Crisis
by Past PBSS Ch. Abraham Hernández
Seda is a pension researcher and PhD candidate in Finance at Bogazici University. Her research interests are around pension funds, emerging markets, behavioral finance, and empirical asset pricing. During her research career, Seda has involved in pensions related projects with several institutions, including the OECD and MIT University. In the last five years, her work on pension funds and auto-enrolment systems have been published by the OECD, Pensions Institute, Investment and Pensions Europe, and Harvard Business Review Turkey. As of 2021, Seda has also been affiliated with the Arc Centre of Excellence in Population Ageing Research (CEPAR) in Australia.
Michelle Acton, FASSA, CFP®
Distribution Strategy Executive, Old Mutual Corporate
In 2002, Michelle qualified as an actuary and after a number of years in the healthcare environment and general management, she moved into the retirement fund industry. Within the retirement fund arena, she has been a retirement fund valuator, a consultant to a number of large retirement funds, an advisor to large employer groups as well as being a member of a number of industry and company related committees. Aside from being a qualified actuary and valuator, she obtained her Post graduate diploma in 2008 in Financial Law, CFP. She has also had experience within the innovation and disruption space. She is currently working within the Distribution team with a strong focus on strategy and the future of distribution. Michelle also involved within the South African Social Security arena, and sits on the Nedlac Social Security Task team.
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