Retirement saving is at the centre of the debate on rising income and wealth inequality. This column studies the role of the pension system in wealth accumulation and distribution in Denmark. The authors find that a pension reform in the late 1980s increased the savings rate and aggregate pension assets significantly by introducing mandated funded pensions. Moreover, it has had an equalising effect on the wealth distribution. The findings illustrate the importance of pension system design for the level and distribution of wealth. 

weforum.org (31.03.2022) All 13 Canadian provinces and territories have now signed up to the plan which will also create a national daycare system. 

brookings.edu (27.05.2022) The COVID-19 recession was born out of a public health threat. Thus, unemployment insurance (UI) was meant to insure people against income losses associated not just with involuntary job loss, as in a usual recession, but also with the choice not to work due to the public health risk.

 International Policy Centre for Inclusive Growth (IPC-IG) (March 2020) Children and adolescents are exposed to a multitude of risks, which have worsened due to the socio-economic repercussions of COVID-19. This emphasises the need to improve the protection of children and adolescents, who already faced greater poverty rates than other age groups before the crisis. This One Pager discusses universal cash transfers in Latin America and the Caribbean.

brookings.edu (03.05.2022) Pension systems around the world faced a “stress test” during the pandemic—what you might call the “pension pandemic paradox.” On the one hand, there was pressure to allow access to pension savings as emergency support during a period of sharp economic downturn. This was understandable, since for many people pension savings are their biggest financial asset. But, in some countries, this turned into unprecedented access beyond immediate emergency needs and put the pension savings system at risk.

oecd.org (March 2022) This document provides an update on the use of job retention (JR) schemes during the COVID-19 crisis until the end of 2021 and takes stock of the different strategies employed by OECD governments to adjust them as the crisis evolved. It provides three key insights. First, since reaching a peak of 20% of employment in April/May 2020 on average across OECD countries, the use of JR support has declined to 1.3% in November/December 2021.

GovInsider (April 2022)  Yet, advancements in healthcare and sanitation standards are helping adults live longer than ever before. Taiwan, in particular, is estimated to become a super-aged society by 2025, with one in five being over 65 years old, said Dr Jenny Su Huey-Jen, President of the National Cheng Kung University (NCKU). To better support the seniors in its population, Taiwan is building a new geriatric hospital. Su shares how this hospital will better provide healthcare services to an ageing population.

Asian Development Bank (April 2022) The brief discusses how an array of tax reforms over time, both in policy and administration, could allow more progressive structures and improved revenue performance. It notes that tax structures could be improved through broader tax bases, especially better inclusion of capital and self-employment income in personal income taxes, allowing more progressive personal income taxation. It also discusses stronger corporate taxation, increased use of property and wealth taxes, and better-designed value-added tax and excises.

Pension Policy International (April 2022) The Japanese government is reportedly discussing plans to expand the coverage of its employee pensions and health insurance programs to all workers in the country. The proposal will be initially handled by a government panel of experts on Japan’s social security system for all generations, The Japan Times reported. In June, Tokyo plans to decide on the direction for the insurance system covering all workers and have it reflected in its honebuto, or basic economic and fiscal policy guidelines.

ESCWA (April 2022)  Prior to the COVID-19 pandemic, social protection systems in the Arab region were weak, fragmented, not inclusive, and non-transparent. They were also costly and unsustainable. Underinvestment in these systems and exclusion of vulnerable populations were key challenges. The COVID-19 crisis spotlighted the problems and presented a historic opportunity to address some of the challenges facing social protection systems. Lessons learned in various countries were identified as useful examples for change, in addition to certain innovations.