Second Thoughts: Who Almost Participates in an IDA Program?

ABSTRACT

Using data reported on applications to a large individual development account (IDA) program (N = 758), the purpose of this study is to examine the self-selection process. Persons who applied to the program but did not enroll had second thoughts about the IDA. Multivariate logistic regression showed that children in the household and negative net worth along with vehicle nonownership were positively related to second thoughts. Education-savers were more likely than home-savers and business-savers to have second thoughts. This information can be used to target individuals at risk of not enrolling in IDAs, ultimately expanding access to underserved, low-income households. Future research is needed to understand how IDA recruitment strategies and institutional characteristics affect program participation and second thoughts.     

Do young generations save for retirement? Ensuring financial security of Gen Z and Gen Y

Concerns about the population aging and global trends to shift more responsibility for future retirement from the state to the individual need policy planning to increase youth's savings for retirement. The study aims to identify behavioral, financial, demographic, and educational determinants of savings for retirement in two groups of young adults with reference to people aged 50–60. The binary logit model and pairwise comparison results showed that the probability of saving for retirement increases with age and responsibility fosters saving behavior among young adults. The observed differences allow the formulation of policy recommendations adapted to the preferences of generations Z and Y.     

Professionals’ Perceptions of Food Insecurity Among Their Low-Income Clients

Abstract

This research examines the awareness of social service professionals of the food security of low-income families in a community-based savings program. Based on survey data of 65 community agencies in seven states that offer the Individual Development Account (IDA) program, the study investigates program providers’ awareness of the food security of IDA program participants. Second, this study presents IDA program provider activities to alleviate food insecurity and summarizes their opinions about how food insecurity could be prevented among their program families. Results show that providers were aware that families did not have enough of the kinds of food they want to eat. This perception was most strongly related to IDA programs with longer durations. Program families’ reports of their children’s food insecurity aligned well with the extent of food hardship reported by the program providers. Access to food and nutritional wellness services was considered most relevant for alleviating food insecurity. Financial security, access to community resources, and direct access to food and family support networks were considered important factors for protecting families from the threat of hunger. Research is needed to identify the role of community organizations that do not provide nutrition assistance for helping low-income families overcome food hardship.     

Assessment of a State TANF Funded IDA Initiative: A Case Study

Individual development accounts (IDAs), wealth-building programs for the working poor, have existed since the late 1980s. Current research suggests that IDA programs benefit families while contributing to local and state economies. This program evaluation assessed the impact of one state Temporary Assistance for Needy Families (TANF)-funded IDA initiative. Quantitative and qualitative data were collected from four agencies chosen using cluster sampling across the state. Agency programmatic and participant data from the last year of operation (N?=?160) were examined. Agencies also provided contact information for three participants who had graduated and three who exited the program prematurely in the past year of operation. In person, interviews were held with agency directors (n?=?6) and IDA participants (n?=?11) were interviewed by telephone. Results indicate that 69% (n?=?111) of IDA enrollees successfully completed the program. IDA participants who exited the program prior to completion also expressed benefits associated with the time in which they were involved. Programmatic and individual benefits and challenges reported guide recommendations for improving IDA marketability, participant outcomes, and organizational performance rates. A critical implication of the findings is the need to expand the use and design of IDA programs legislatively to better serve historically oppressed and working poor families more effectively.     

The Model Development Dissertation

ABSTRACT

Asset-building programs, such as Individual Development Account (IDA) programs within social service agencies, assist low-income employed clients in building credit, purchasing affordable assets, and gaining wealth. This longitudinal exploratory study examines the credit outcomes of IDA programs to add to the knowledge concerning the effects of IDAs as an asset-building tool. Data were analyzed using a convenience sample of IDA participants and nonparticipants (N = 164), and the results indicated that initial credit score and history are associated with program participation. However, results also suggested that initial credit score is not a meaningful indicator of program completion, time to completion, or type of asset purchased for participants. Those who completed the IDA program within 2 years experienced the highest credit gains. Future research with larger samples is needed to further assess the impact of credit on program participation and completion and on whether credit gains are sustained.     

New Labour and Pensions Reform: Security in Retirement?

New Labour has defined the problem of security in retirement as one of undersaving and has sought to resolve it both by measures which encourage saving and by improving financial literacy. The article discusses both of these approaches, arguing that each is flawed and that, in addition, New Labour's pension policy exhibits several tensions which threaten to undermine the objective of providing a secure income in retirement.     

Just deserts? ‘Privatisation’ and the history of deservingness in Australia's retirement incomes system

Over the last few decades, changes in Australia's retirement incomes policy, including the introduction of compulsory superannuation, have seen governments encourage individuals to provide for their own old age from private means. This process has been described as ‘privatisation’ of retirement incomes. However, beyond the ‘privatisation’ thesis, there has been little critical examination of what these changes have meant for the nature and relative importance of the different principles underpinning Australia's retirement incomes system. This paper aims to provide such an examination. Drawing on the principles of deservingness and need, the paper provides an historical analysis of the development of Australia's retirement incomes system, tracing how these two principles underpinned the first age pension and subsequently contributed to the emergence of compulsory superannuation. This approach provides a deeper understanding of how contemporary policy changes have altered the structure of Australia's retirement incomes system, arguing that there are important historical continuities as well as changes. It argues that the phrase ‘state‐supported private saving’, rather than ‘privatisation’, captures the nature of this contemporary reform process.     

‘I Might not Live That Long!’ A Study of Young Women's Pension Planning in the UK

There has been considerable concern about levels of pension saving especially given increases in longevity and rising pension deficits. In particular, the prospects of many future female pensioners have been questioned. As pensions are determined by contributions throughout the life course it is imperative to comprehend the attitudes, knowledge, expectations and savings habits of people from an early age to explore why under‐saving occurs. This is particularly pertinent given recent governments' emphasis on individual responsibility for financial provision in retirement. However, there is little research which focuses specifically on young women's attitudes or planning towards pensions despite considerable concern about the future of women's pensions. This article considers young women's (18–30) attitudes towards pensions and whether they differ according to socio‐economic status by using interviews with 15 women (five in routine and manual occupations, five intermediate, five professional and managerial) about how knowledge and choice, trust, responsibility, risk and uncertainty impact on their pension decisions. It is evident that the ability and willingness of people to contribute to a pension depends, among other things, on the pension offered by employers, the pension requirements in place and immediate financial needs. Therefore this article shows that pension policy needs to take into account women's employment histories, which are often fragmented and diverse, when considering young women's attitudes towards pension saving.     

Effective retirement age from employment and full‐time employment,and the impact of the 2008 crisis

Estimates of effective retirement age based on labour force participation rates are commonly used for actuarial experience review and policy development. However, the transition from work to retirement and the socio‐economic environment have evolved over the years, influenced by a growing role for gradual retirement and the labour market impact of the 2008 economic crisis. Rather than focusing exclusively on retirement ages based on labour force participation rates, this article presents complementary estimates of retirement ages to better assess the effective retirement age from employment. It also introduces the concept of retirement from full‐time employment, showing that the retirement age from full‐time employment is systematically lower than the retirement age from employment. The results reveal that the trend towards an increase in the retirement age has been impacted by economic conditions when considering the effective employment of older workers. Results are presented for different Member countries of the Organisation for Economic Co‐operation and Development over the period 2005–2015.     

Individual accounts: Lessons from Sweden

Abstract Increasing numbers of countries are using mandatory funded individual accounts to provide retirement. Sweden in 2000 instituted a mandatory funded individual account system that differs in a number of ways from earlier such systems. It incorporates features that reflect lessons learned from other countries; in particular, ways to reduce the system's administrative costs.     

Defamilization/familization measures and women's pension income—The case of Taiwan

This paper examines how defamilization and familization measures can affect women's capacity to accumulate pension income and their subsequent standard of living after retirement. Firstly, it highlights the concepts of defamilization and familization and discusses the potential of these measures in assisting women to save pension income through the “commodification” and “decommodification” of labor. Secondly, it examines the major pension policies and examples of defamilization and familization measures in Taiwan. It shows how the current limited provision of such measures could create “double jeopardy” for women, affecting access to paid employment or resources to enable women who wish to undertake caring responsibilities to do so, ultimately impacting their capacity to accumulate pension income. Thirdly, it suggests ways to strengthen defamilization and familization measures in order to enable women to accumulate sufficient retirement income on the basis of three preconditions: policy attention to the reciprocal relationship between familization/defamilization measures and pension schemes for women; a recognition of differences between women in their preferred strategies to accumulate pension income; and an emphasis on a life course perspective to understand the double jeopardies faced by women in saving for retirement.     

Savings for Survivors: An Individual Development Account Program for Survivors of Intimate-Partner Violence

ABSTRACT

Survivors of domestic violence often remain in abusive relationships due to limited economic resources, economic dependence on an abusive partner, and economic abuse. Viewing women who have experienced domestic violence as “survivors” suggests that when provided access to appropriate resources, they will seek help and utilize such resources allowing them to increase their stability and potentially escape an abusive partner. Assets have been shown to have a variety of positive associations with a wide range of economic, social, and psychological outcomes. Economic initiatives, such as financial education and individual development accounts (IDAs), aimed toward survivors of domestic violence are on the rise. However, to date, there are few studies. Data on IDA activity, including savings rates, withdrawals, and asset purchases, for 125 women who participated in an IDA matched-savings program for survivors of intimate-partner violence were examined. Approximately 2/3 of women reached their savings goal and 76% made at least 1 matched-savings withdrawal and asset purchase. Results suggest survivors can be successful savers and purchase assets that may contribute to their economic stability. Implications are discussed, including the need for long-term studies to examine how participation in a matched-savings program affects women's well-being, safety, and future experiences of intimate-partner violence.     

何时方休?——中国老年人就业参与的队列分析

推迟退休年龄是应对人口老龄化的重要措施.利用第六次人口普查汇总数据,以40岁为年龄起点分析从中年到老年就业参与状况,并结合"五普"数据运用队列分析方法探讨老年人口就业状况的变化轨迹.结果显示,在法定退休年龄处,人口在业比例有一个明显的下降梯度,但法定退休年龄对老年群体的就业行为影响程度存在明显的城乡差异.城镇人口在业比例在50-60岁间明显下降,而农村人口在业比例下降则发生在60岁以后.此外,在业老年人口中超过80%为农村老年劳动力.虽然当前在农村地区并未实行退休制度,但农村养老金的发放以退休年龄为起点,因此,在调整退休年龄时需要特别关注农村老人,避免养老金的延迟发放使其陷入贫困和老无所依.     

Deciding Where to Retire: Intended Retirement Location Choices of Formerly Undocumented Mexican Migrants*

Objective. I use transnational theory to address how transnational relationships, behavior, and context influence retirement location choices of recently legalized immigrants. I also account for the relationship between assimilation and retirement location choices. Methods. To test these theories, I use the 1992 Legalized Population Survey to examine formerly undocumented Mexican immigrants' attachment to the United States through their intended retirement location, either the United States or Mexico. I use logistic regression to test whether the two theories are related with retirement location choices. Results. I find strong support for the role of transnational factors, thus widening the scope of the literature to include variables linking immigrants to their communities within Mexico. Conclusion. This study empirically tests and quantifies transnational theory using multivariate analysis, and adds to the transnational literature by suggesting that national boundaries are political constructs that do not completely contain social and economic systems.     

Postretirement earnings relative to preretirement earnings: gender and racial differences

As the social security program comes under increasing financial pressure in the coming decades, the federal government will encourage elderly people to continue to work. Data from the Social Security Administration indicate that earnings are already a sizable component of retirement income. But there is public concern about how women and minorities will fare economically in this changing policy environment. To what extent can women and minorities keep earning money after they reach retirement age? This article presents the results of a study that investigated the postretirement earnings, relative to the preretirement earnings, of women and minorities, and compared the results with those for men and whites. The major finding, based on regression analyses, was that women's postretirement earnings, relative to their preretirement earnings, were greater than those of men. Furthermore, the regression results indicate that nonwhites' postretirement earnings could not be predicted by their preretirement earnings or by any of the independent variables used in the study, including age, gender, education, marital status, number of children, occupation, and preretirement earnings.     

Employers and the Management of Retirement

In the UK early withdrawal from the labour market is seen as a risk and a cost, worsening the dependency ratio, raising public and private pension costs and threatening additional welfare expenditure over the longer term. Explanations of the retirement process have focused on the welfare state and the impact of pensions and other social security policies. This paper argues that a missing actor in these accounts is the employing organization. Early retirement in the UK has been predominantly driven by the labour requirements of employers rather than state policies to encourage older workers to take early retirement. There is a case for arguing that significant change in retirement behaviour in the UK will come primarily from the modification of employers’ policies. This research is a case study of three employers: one public‐sector and two commercial. It examines the dynamics of the retirement decision. This paper reports the public‐sector case. The findings indicate that employers, in order to reduce their pensions liabilities and stem the cost of early retirement, are trying to regain control of the retirement process. The employees interviewed felt they experienced little choice concerning their retirement, had limited knowledge of the options open to them and found pensions complicated and confusing.     

An Exploratory Study of Soldiers' Attitudes Toward a Matched Savings Program in Korea

ABSTRACT

This study explores the possibility of implementing a saving program for military soldiers in Korea. Over the past decade, asset-based programs have been expanded in Korea. Using a vignette method describing a military matched savings program and logistic regression, this study examines soldiers' attitudes toward a matched savings program. This study with a final sample of 224 soldiers in a Brigade in Korea found that 67% of survey participants are willing to join a savings program. In addition, most soldiers expect the program to have a positive impact on their military life, saving habits, and life after army service. A logistic regression analysis found that family relationship, duty type, rank, and age are significantly related to a soldier's willingness to join the program. The study provides policy and practice implications in that a military savings program may help soldiers to adapt to army service and prepare for life after army service. This study concludes with possibilities for future research when examining soldiers' attitudes toward a military savings program.     

Increased wealth and income as correlates of self-assessed retirement

This study examined whether retirement implies complete withdrawal from the labor force and the role that increased wealth and income play in regard to the nature of retirement. Data came from the Health & Retirement Study, Waves 1-5. Findings indicated that most study sample pre-retirees remained in the labor force as they moved into what are considered the normal retirement years. As they moved on average from 50+ years of age to 60+ years of age, increasing percentages of study sample pre-retirees reported themselves as completely retired. Those who viewed themselves as completely retired were far less likely to work than those who did not view themselves as completely retired. Of particular importance was the finding that increased income in 2000 decreased the likelihood of self-reported complete retirement. Equally important was the finding that increased assets had no effect on retirement status with the exception of survey year 1998 when increased assets decreased the likelihood of viewing oneself as completely retired. Findings suggested that pro-work retirement policies aimed at increasing labor force participation among pre-retirees and increasing the normal retirement age can be effective. Five pro-work policies were discussed.     

Ageing Baby Boomers in Australia: Evidence Informing Actions for Better Retirement

The first Australian baby boomers are starting to retire. Consequently, it is essential to develop and apply a strong evidence base to facilitate their successful retirement and ongoing wellbeing. This review focuses on recent literature on pre‐retirement baby boomers to identify available research findings and gaps to be filled on retirement preparation. A notable shortage of empirical literature was found on pathways to retirement and financial plans. A trend emerged towards an intention to retire at an older age, and the main source of retirement income was expected to be superannuation. Over half of Australian boomers expect their savings to be sufficient; however, 30–50% anticipate a decline in their standard of living. The majority want the responsibility for funding retirement shared between the individual, government and employers. Further research is needed on the varying plans and expectations of men and women, of low‐skilled workers, and those from culturally diverse backgrounds.     

The Malthusian fallacy: Prophecies of doom and the crisis of Social Security

Thomas Malthus and the neo-Malthusians are concerned about exponential growth of the population and the consequences of this growth on the world. Their predictions of doom are often misplaced because they do not take into account changes that may counterbalance population growth. This is the Malthusian fallacy: forecast of doom predicated on one change that does not take other changes into account. This paper examines the root of this fallacy and examines the prophecies of doom that swirl around Social Security as the graying baby boomers move toward their retirement years in record numbers.