Pension incentives and retirement planning in rural china: Evidence for the new rural pension scheme

2021 ◽  
Author(s):  
Juan Carlos Caro ◽  
Marcela Parada‐Contzen
Keyword(s):  
Rural China ◽  
Retirement Planning ◽  
Pension Scheme

scholarly journals Retirement Planning Behaviour of Working Individuals and Legal Proposition for New Pension System in Malaysia

2016 ◽  
Vol 9 (4) ◽  
pp. 43 ◽  
Author(s):  
Kamal Halili Hassan ◽  
Rohani Abdul Rahim ◽  
Fariza Ahmad ◽  
Tengku Noor Azira Tengku Zainuddin ◽  
Rooshida Rahim Merican ◽  
...  
Keyword(s):  
Private Sector ◽  
Financial Literacy ◽  
Pension System ◽  
Retirement Planning ◽  
Private Pension ◽  
Pension Scheme ◽  
Age Group ◽  
Goal Clarity ◽  
Voluntary Basis ◽  
Private Pension System

<p class="MsoNormal" style="text-align: justify;">Problems have been identified pertaining to retirement scheme of the private sector employees in Malaysia where there is no legislated pension system in force. As a result of that, pension scheme and savings are more of a voluntary basis; although the principle is good but in practice many retirees suffer financially during their retirement. The objectives of this study are to examine factors contributing to individual’s retirement planning behavior and the private pension system in the private sector in Malaysia. Retirement planning behaviour in this study was measured with series of questions on behaviour about retirement planning. A total of 500 working individuals from private sectors in the age group of 40 years and above had participated in this study. The results identified several significant variables in the prediction of retirement planning among working individuals in Malaysia, including individual who had higher levels of education, higher levels of income, financial literacy, retirement goal clarity and attitude towards retirement. There is a correlation between retirement planning behavior and saving for old aged. As a response to the result collected from the survey, a legal proposition is put forward to address issues of pension during retirement among private sector’s employees.</p>

Financial literacy, trust and retirement planning

2015 ◽  
Vol 16 (1) ◽  
pp. 43-64 ◽  
Author(s):  
ORNELLA RICCI ◽  
MASSIMO CARATELLI
Keyword(s):  
Financial Institutions ◽  
Financial Literacy ◽  
Retirement Planning ◽  
Private Pension ◽  
Empirical Literature ◽  
Pension Scheme ◽  
Severance Pay ◽  
Endogenous Regressors ◽  
Financial Contract ◽  
The Impact

AbstractWe study the complex relationship between financial literacy, retirement planning and trust in financial institutions, using data from the 2010 Bank of Italy Survey on Household Income and Wealth. The impact of financial literacy on retirement planning is a well-established issue in the existing empirical literature; our main contribution is proving that financial knowledge not only impacts retirement planning, but also the decisions of entering a private pension scheme (or devoting the severance pay to a private pension scheme). Adding the consideration of trust poses serious econometric concerns, since both financial literacy and trust in financial institutions are likely to be endogenous and the presence of two endogenous regressors renders the identification of causality very difficult. Our solution is to keep only financial literacy as endogenous and include in our models an exogenous regional indicator of social capital (similar to the one adopted by Guisoet al., 2004), as a proxy for the level of trust between the counterparts of a financial contract in each geographical area. Our main findings show that trust has a positive influence on both the decisions to enter a private pension scheme or to devote the severance pay to a private pension scheme.

The new rural social pension program in rural China: participation and its correlates

2016 ◽  
Vol 8 (4) ◽  
pp. 647-661 ◽  
Author(s):  
Qiran Zhao ◽  
Stephan Brosig ◽  
Renfu Luo ◽  
Linxiu Zhang ◽  
Ai Yue ◽  
...  
Keyword(s):  
Labor Supply ◽  
Rural China ◽  
The Elderly ◽  
Rural Elderly ◽  
Pension Scheme ◽  
Data Set ◽  
Content Type ◽  
Pension Program ◽  
Social Pension ◽  
The Impact

Purpose The need for a universal rural pension system has been heightened by demographic changes in rural China, including the rapid aging of the nation’s rural population and a dramatic decline in fertility. In response to these changes, China’s Government introduced the New Rural Social Pension Program (NRSPP) in 2009, a voluntary and highly subsidized pension scheme. The purpose of this paper is to assess the participation of rural farmers in the NRSPP. Furthermore, the authors examine whether the NRSPP affects the labor supply of the elderly population in China. Design/methodology/approach This paper uses household-level data from a sample of 2,020 households originating from a survey conducted by the authors in five provinces, 25 counties, and 101 villages in rural China. Using a probit model and conducting correlation analysis, the authors demonstrate the factors affecting the participation and the impact of NRSPP on labor supply of the rural elderly. Findings The results show there are several factors that are correlated with participation, such as specific policy variant in force in the respective household's province, the size of the pension payout from government, the age of sample individuals, and the value of household durable assets. Specifically, different characteristics of NRSPP policy implementation increase participation in China’s social pension program. The results suggest that the introduction of the NRSPP has not affected the labor supply of the rural elderly, in general, although it has reduced participation for the elderly who were in poor health. Originality/value Several previous studies have covered the NRSPP. However, all previous studies were based on case studies or just focused on a small region, and for this reason the results cannot reflect the populations and heterogeneity of rural areas. Therefore, a data set with a large sample size is used in this paper to provide a new perspective to fully understand the participation of NRSPP and its impacts on rural households. This paper will make an update contribution to the literature in the area of pension programs in China.

scholarly journals Public Pension, Labor Force Participation, and Depressive Symptoms across Gender among Older Adults in Rural China: A Moderated Mediation Analysis

2020 ◽  
Vol 17 (9) ◽  
pp. 3193
Author(s):  
Xin Gao ◽  
Tieying Feng
Keyword(s):  
Mental Health ◽  
Older Adults ◽  
Depressive Symptoms ◽  
Labor Force ◽  
Labor Force Participation ◽  
Mediation Analysis ◽  
Rural China ◽  
Moderated Mediation ◽  
Public Pension ◽  
Pension Scheme

Due to insufficient financial support and unceasing work, the rural elderly in China experience a range of mental disorders, and the most common one is depression. This study aims to investigate the association between public pension, labor force participation (LFP), and depressive symptoms for older men and women in rural China. A moderated mediation analysis is conducted using data in the 2015 wave extracted from the China Health and Retirement Longitudinal Study (CHARLS), a continuous national social survey. A total of 2709 available surveys were obtained in our analysis. Using PROCESS, results revealed that the income from China’s New Rural Pension Scheme (NRPS) was directly negatively related to depressive symptoms. However, LFP did not mediate the link between pension income (PI) and depressive symptoms in the total study population. The results of moderated mediation estimates indicated that gender significantly moderated the relationship between LFP and depressive symptoms. Specifically, for older women, the indirect effect of PI on depressive symptoms via LFP was significant, but not for the opposite sex. In order to improve the mental health of older adults in rural China, the policy makers and mental health therapists need to pay attention to the aforementioned factors.

Public pension and borrowing behavior: evidence from rural China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Conglong Fang ◽  
Qinghua Shi
Keyword(s):  
Design Methodology ◽  
Rural China ◽  
Eastern China ◽  
The Elderly ◽  
Public Pension ◽  
Pension Scheme ◽  
Content Type ◽  
Rural Credit ◽  
Rural Credit Cooperatives ◽  
Credit Cooperatives

PurposeThe purpose of this paper is to investigate how China's rural public pension affects farmers' formal borrowing, which has always been rationed.Design/methodology/approachThis paper uses a difference-in-difference (DID) estimation to evaluate the effect of the implementation of the New Rural Pension Scheme (NRPS) at the end of 2009 on farmers' formal borrowing.FindingsThe results show that the NRPS significantly reduces farmers' formal borrowing from rural credit cooperatives (RCCs). The effect is significant among the elderly, eastern China and high-income groups.Originality/valueThis study contributes to the literature by identifying another potential reason for rural formal credit shortage. Policymakers and rural formal financial institutions should consider the demand side problem of lending.

scholarly journals Financial Behaviour and Retirement Planning in Kenya, Assessing the Role of Self-Control Bias

2021 ◽  
Vol 17 (23) ◽  
pp. 348
Author(s):  
Cynthia Stella Waga ◽  
Florence Memba ◽  
Jane Muriithi
Keyword(s):  
Financial Distress ◽  
Personal Responsibility ◽  
Binary Logistic Regression ◽  
Financial Education ◽  
Retirement Planning ◽  
Self Control ◽  
Financial Behavior ◽  
Pension Scheme ◽  
Defined Contribution ◽  
Cross Sectional

The shift towards defined contribution schemes is forcing employees to take personal responsibility for securing their future through intentional retirement savings. Financial behavior may have a significant bearing on whether employees meet their contributory retirement obligations while avoiding financial distress. Utilising a cross-sectional research design and data from pension scheme members in Kenya, the study evaluates the interaction of self-control bias. The binary logistic regression results showed that financially disciplined individuals are 1.634 times more likely to plan comprehensively for their retirement, while the interaction results suggest that individuals with self-control bias are 0.502 times less likely to be comprehensive retirement planners even if they are already financially disciplined. The findings imply that financial discipline coupled with selfcontrol is necessary for retirement planning. The use of behavioral change interventions is recommended in financial education initiatives in order to inculcate both desirable financial behavior and self-control attributes in planning for retirement.

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