Ageing and pension reform around the world: evidence from eleven countries

Ageing and Pension Reform Around the World : Evidence from Eleven Countries (2005, Hardcover)
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Ageing and Pension Reform Around the World. Evidence from Eleven Countries. Edited by Giuliano Bonoli, Professor of Social Policy, Swiss Graduate School of. Request PDF on ResearchGate | Ageing and pension reform around the world: Evidence from eleven countries | 'This is an enlightening introduction to the.

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They show that even modest pension benefits in China, as compared to other developing nations, could benefit other generations of the extended families. Researchers caution that, meanwhile, substantive changes in living arrangements may offset pension benefits through reduced instrumental support to parents directly provided by children.

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The results show that sons but not daughters are much more inclined to migrate out of their home county around the pension eligibility age cut-off. Adult children are also more likely to migrate out if their parents are healthy.

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These findings suggest pensions may affect informal old-age support not merely through living under different roofs, but also because the distance between elderly parents and children will become much larger. The erosion of this very important old-age support system will likely generate changes in health among seniors, even in the short term.

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Fortunately, overall, the NRPS improves the well-being of the elderly beyond their increased utilization of healthcare. The improvement in mental health is found to be larger for vulnerable populations with financial and health constraints. The study argues that pension payments may affect mental health through at least three plausible channels: i changes in lifestyle factors, such as independent living, service consumption, leisure time, and social network connectedness; ii health investments, such as nutritional intake and medical treatment; iii reduced financial stress, increased self-esteem and life satisfaction, and improved confidence in the future.

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Even though a recent study has found that pension income weakens the non-pecuniary and pecuniary transfers from children to elderly parents, the size of the effect is very small compared to the positive income change for pensioners. The NRPS had achieved universal coverage at the county level in , thus providing a nationwide, subsidized old-age support system to the older population in rural China. Between and , China rapidly implemented a similar social pension program for all eligible urban residents.

Starting from , China has set an ambitious plan to integrate the rural and urban social pensions into one system across the country, establishing a national pension system that provides wide coverage, basic security, multi-level options and sustainability. Once completed in , this unified pension system will likely serve more than million residents in China.

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Besides tremendous social and economic impacts for China, the study of social pensions there may have general implications for the U. As policymakers attempt to address the financial sustainability of the U. Social Security program, it is important to evaluate the extent to which Social Security benefits may directly improve old-age health. And if improved, Social Security benefits may be offset by reduced health care expenditures out of the Medicaid or Medicare program.

Similar questions have also been raised in Europe where demographic changes are creating important policy questions.

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