Search Results (81)

Population aging poses significant challenges to the sustainability of pension systems. This study presents an integrated methodological approach that uniquely combines actuarial life-cycle modeling with agent-based simulation to assess the potential of Reverse Mortgage Loans (RMLs) as a dual lever for enhancing retiree welfare and supporting pension system resilience under demographic and financial uncertainty. We explore Reverse Mortgage Loans (RMLs) as a potential financial instrument to support retirees while alleviating pressure on public pensions. Unlike prior research that treats individual decisions or policy outcomes in isolation, our hybrid model explicitly captures feedback loops between household-level behavior and system-wide financial stability. To test our hypothesis that RMLs can improve individual consumption outcomes and bolster systemic solvency, we develop a hybrid model combining actuarial techniques and agent-based simulations, incorporating stochastic housing prices, longevity risk, regulatory capital requirements, and demographic shifts. This dual-framework enables a structured investigation of how micro-level financial decisions propagate through market dynamics, influencing solvency, pricing, and adoption trends. Our central hypothesis is that reverse mortgages, when actuarially calibrated and macroprudentially regulated, enhance individual financial well-being while preserving long-run solvency at the system level. Simulation results indicate that RMLs can improve consumption smoothing, raise expected utility for retirees, and contribute to long-term fiscal sustainability. Moreover, we introduce a dynamic regulatory mechanism that adjusts capital buffers based on evolving market and demographic conditions, enhancing system resilience. Our simulation design supports multi-scenario testing of financial robustness and policy outcomes, providing a transparent tool for stress-testing RML adoption at scale. These findings suggest that, when well-regulated, RMLs can serve as a viable supplement to traditional retirement financing. Rather than offering prescriptive guidance, this framework provides insights to policymakers, financial institutions, and regulators seeking to integrate RMLs into broader pension strategies. Full article

This article aims to identify the social groups particularly vulnerable to pandemic-related stress in the urban environment. The research seeks answers to questions regarding the following: (1) the demographic and socio-economic features of vulnerable groups and (2) their location in the city space. The main research tool was a geosurvey in which respondents determined the stress level experienced. The area of investigation covered three Polish cities. The results obtained were devised using statistical analysis methods. They make it possible to state that the features most differentiating stress level were sex, age, occupational activity, and profession practised. Women, persons aged 60+, economically inactive people (pensioners and unemployed people), and those practising certain professions, especially representing the tourism sector, were the groups most vulnerable to stress. The areas concentrating vulnerable groups were mainly centres of compact development. We assume that this knowledge will allow for improving public health conditions in cities, strained by the COVID-19 pandemic, preparing strategies for adaptation to threats such as a pandemic, with regard to planning and city governance, and, thus, increasing city stress resilience and preparing better for further similar risks. Full article

Reducing the carbon intensity of well-being (CIWB) is essential for advancing environmental sustainability and socio-economic development. The expansion of digital service trade has emerged as a novel engine of global economic growth and a promising pathway for pollution reduction and carbon mitigation. This study investigates the nonlinear impact of digital service trade on CIWB, identifying an inverted U-shaped relationship—initially increasing CIWB, then reducing it beyond a certain threshold. In the financial digital service trade sector, this effect is mediated by energy structure transition, whereas in the technology-intensive sector, it is driven by green technological innovation. In contrast, digital service trade in the insurance, pension, and audiovisual sectors directly suppresses CIWB. Moreover, rising public environmental awareness helps leverage and strengthen the inhibitory effect of digital service trade on CIWB. Regionally, except for North America (which displays a consistently inhibitory effect), Asia, Africa, Europe, and Oceania reflect patterns similar to the overall sample. In regions with higher economic and internet development levels, the inverted U-shaped curve is steeper, and its turning point is located further to the left. Temporally, the relationship mirrors the full-sample patterns prior to the enforcement of the Paris Agreement, while an inhibitory effect emerges afterward. These findings offer policy implications for achieving the United Nations’ 2030 Sustainable Development Goals. Full article

This paper establishes a theoretical link between actuarial neutrality and the Oaxaca–Blinder decomposition to empirically assess vertical equity in public defined-benefit schemes. We demonstrate how this approach can be generalized to non-linear functions, point systems, and notional accounts. We use an aligned dynamic microsimulation model to apply this method to the first pillar of the Swiss pension system and highlight the following three key effects: (1) the impact of the accrual rate on vertical equity; (2) the assessment of actuarial neutrality through the comparison of migrants with the non-migrant population; and (3) vertical equity across marital statuses. Our findings indicate that changing societal trends, such as increased migration, female labor participation, and the rise in non-marital unions, may alter the extent of vertical equity. This has significant implications for actuarial risk management, as a higher degree of vertical equity is associated with increased pension expenses, thereby raising the financial sustainability risk of the pension system. Future research should explore these dynamics to ensure that pension systems remain both equitable and financially sustainable in the face of evolving societal trends. Full article

Under the guidance of the “community pension” initiative and adhering to the people-centered principle, this study focuses on the public interaction spaces within eight communities in the central urban area of Jiaozuo City. It assesses the current state of these spaces and the needs of the elderly population. A comprehensive evaluation system, integrating both subjective and objective factors, is developed for this purpose. Utilizing the railway station community as an illustrative case, this paper delves into the interaction behavior characteristics of various elderly groups and proposes optimal design directions for various public interaction spaces, encompassing functional diversity, space aging adaptability, and construction refinement. Full article

As pension benefits from statutory public schemes become less generous, and many countries face pension-savings crises, the willingness to participate in supplementary retirement saving instruments becomes crucial for sustainable financial well-being. The main objective of this article is to present how trust and financial literacy influence the choice of sustainable auto-enrolment pension scheme as a private and supplementary pension savings. The study highlighted factors influencing participation in auto-enrollment and private supplementary pension savings. The study focuses mainly on financial literacy and trust. We used the CAWI method with 857 interviews in Poland—the first country in Central and Eastern Europe to introduce an auto-enrolment pension system. Our study uses multivariable data-mining tools, and several regression models were applied. We used Logistic Regression (LR), Multivariate Linear Regression (MLR), and Factor Analysis of Mixed Data (FAMD) to support the LR analysis. We propose four regression models. Our findings present that: 1. The lower the consumer’s knowledge level, the more their decisions are based on trust. 2. Trust in the state, rather than trust in financial institutions, plays a crucial role for people with low financial literacy, which is a critical factor in choosing the auto-enrolment option for pension savings. 3. Men had higher odds of auto-enrolment pension saving than women. 4. Employees of economic universities and academics had higher odds of participating in capital pension plans than those of general universities and non-academics. Our findings can signal to governments and policymakers about factors influencing the choice of auto-enrolment supplementary retirement savings. These findings strengthen the role of sustainable economic education. Full article

The sustainability and adequacy of pension systems are central to public policy debates in aging societies. This paper introduces a novel microsimulation model with probabilistic behavior to assess these dual challenges in the Spanish pension system. The model employs a mixed-projection method, integrating a macro approach—using economic and demographic aggregates from official sources such as the Spanish Statistics Office (INE) and Eurostat—with a micro approach based on the Continuous Sample of Working Lives (MCVL) dataset from Spanish Social Security. This framework enables individual-level projections of key labor market variables, including work time, salary, and initial pensions, under diverse reform scenarios. The results demonstrate the model’s ability to predict initial pensions with high accuracy, providing detailed insights into adequacy by age, gender, and income levels, as well as distributional measures such as density functions and quantiles. Sustainability findings indicate that pension expenditures are projected to stabilize at 13.9% of Gross Domestic Product (GDP) by 2050. The proposed model provides a robust and versatile tool for policymakers, offering a comprehensive evaluation of the long-term impacts of pension reforms on both system sustainability and individual adequacy. Full article

Background/Objectives: The aging population poses a significant challenge to global public health, impacting the physical, mental, and social health of older adults. Social activity has been widely acknowledged as a protective factor for both mental and physical well-being. Research indicates that consistent engagement in social activities can mitigate the risk of depression, prevent cognitive decline, and support physical functionality. This study aims to explore the correlations and associations between two variables related to social activity (self-reported activity level and time spent with friends) and various other variables among geriatric patients in Northern Romania. Methods: This cross-sectional, single-center observational study utilized data from 588 geriatric patients (402 females and 186 males) admitted to the Geriatrics ward of the Municipal Clinical Hospital. The dataset included variables such as sociodemographic information, Geriatric Depression Scale (GDS), Montreal Cognitive Assessment (MoCA), and SARC-F questionnaire scores, time spent with friends, and activity levels. Descriptive statistics were computed alongside statistical tests to examine group differences, associations, and predictive relationships. Results: The sample was characterized by variability in age, educational attainment, and pension levels. The statistical analyses revealed significant differences based on education, pension, and civil status. Patients with higher GDS and SARC-F scores had lower odds of spending time with friends or belonging to the active or extremely active groups. Notably, women reported higher GDS scores and lower activity levels compared to men. Conclusions: Understanding the factors that influence social activity among older adults is essential for designing targeted interventions aimed at preventing social isolation and fostering healthy aging across diverse demographic and environmental contexts. Full article

This paper explores the integration of Business Process Management (BPM) with blockchain technology to enhance pension systems, using Hungary as a case study. Specifically, it addresses scientific challenges related to data access management, regulatory compliance, and system scalability within blockchain-based pension frameworks. This study investigates how BPM can improve the transparency, efficiency, and security of blockchain applications in pension administration by optimizing workflows and automating compliance with regulations such as GDPR. By analyzing operational flow diagrams and implementing architectural models, this paper presents an innovative approach to pension management, demonstrating significant improvements in service quality and operational efficiency. Findings from this research provide empirical evidence of the benefits of BPM-enhanced blockchain systems, offering insights applicable to pension systems beyond the Hungarian context, including examples from other countries. Full article

In recent years, EU member states have faced two significant crises: the COVID-19 pandemic and high inflation, exacerbated by geopolitical instability. These events have led to a decline in household purchasing power. Our study aims to quantify the impact of these crises on household income dynamics in Romania, using data from the EU Survey on Income and Living Conditions and the EUROMOD tax-benefit microsimulation model. We analyze income changes across demographic segments from 2019 to 2021 (COVID-19 period) and 2021 to 2023 (inflation crisis), focusing on household characteristics such as the presence and number of children, the gender of the household head, and the presence of elderly members. Our findings reveal that while disposable income increased from 2019 to 2021, the poorest 10% experienced the smallest gains. In 2022–2023, inflation eroded these increases, and the lower half of the income distribution struggled with reduced earnings and pensions. Despite this, the Gini coefficient for disposable income decreased from 2019 to 2023, indicating a reduced inequality. Our study highlighted that targeted public policy interventions are essential to support vulnerable households and mitigate the effects of economic shocks. Full article

Background: Mental and behavioral disorders significantly impair psychophysical functioning, leading to challenges in daily activities. The increasing recognition of the importance of mental health in global development goals has resulted in its inclusion in the United Nations’ Sustainable Development Goals. The burden of mental disorders has grown worldwide due to demographic changes, with substantial economic and social impacts. Objective: This study aimed to examine the indirect costs of mental disorders in Poland by analyzing the expenditures by the Social Insurance Institution (ZUS) on work incapacity benefits and disability pensions from 2012 to 2023. The goal was to identify trends, dependencies, and the economic impact of policy changes. Material and Methods: Data were collected from ZUS reports on annual expenditures for work incapacity benefits and disability pensions. Advanced statistical methods, including linear regression and Pearson correlation, were employed to analyze trends and relationships. Student’s t-tests assessed the statistical significance of the observed trends. Results: The expenditures on benefits for work incapacity due to mental disorders increased significantly over the past decade, particularly from 2020 to 2023, partly due to the COVID-19 pandemic. Short-term absenteeism due to mental disorders accounted for 10.5% of the total sick leave days. A strong positive correlation was found between years and benefit expenditures. Conversely, the disability pension expenditures exhibited a downward trend, potentially reflecting improvements in public health or policy changes. Conclusions: The significant increase in expenditures on benefits related to mental disorders may reflect greater awareness, improved diagnostics, and the impact of the COVID-19 pandemic. In contrast, the decline in disability pension expenditures could suggest improved mental health or effective policy measures. However, it is important to emphasize that the presented data are not the only factor influencing this situation. Multiple variables, including societal, economic, and healthcare system changes, contribute to these trends. Therefore, further research is necessary to fully understand the underlying causes and to guide effective policy development. Regular monitoring and continued investment in mental health are essential to managing indirect costs such as absenteeism and presenteeism efficiently. Full article

As a vital part of smart city development, smart community development is in full swing, aiming to improve residents’ sense of safety (RSS). Most research focuses on the technological innovation and infrastructure construction of smart communities; few studies have evaluated smart community development from the perspective of the RSS. Thus, this paper aims to propose a system of evaluation indicators for assessing the RSS of smart community development. After the relevant evaluation indicators were identified, an evaluation method was proposed using the CRITIC-FCE approach. To validate the feasibility of this method, 31 smart communities in China were selected in this study. The results showed the following: (1) The indicator of the highest weight was ‘cultural activities for the elderly’, while ‘overall design’ had the lowest weight, highlighting the importance of community services in enhancing the RSS of smart community development. (2) The selected cities and communities achieved a generally high level in the RSS of smart community development, and some differences were observed among them. (3) Emergency services and property services play an important role in enhancing the RSS of smart community development, with communities excelling in these areas, achieving higher overall rankings. Conversely, the score of pension service was relatively low, which is a common problem in the evaluation results, reflecting the shortcomings of the current smart community in providing pension service. Consequently, several strategies are suggested to enhance the RSS of smart community development, such as building an emergency information system based on advanced technology, establishing mobile and Internet of Things-based emergency assistance services for the elderly, and enhancing the maintenance of public facilities. This research enriches the knowledge of RSS and provides guidance for further research for the RSS of smart community development. Full article

Previous research predicts an increasing financial deficit in Algeria’s PAYG retirement system, mainly due to rapid population aging, and parametric adjustments will be insufficient to alleviate this imbalance. Mitigating the effects of population aging will necessitate further intervention. In this work, we analyze how capping contributed salaries can help to mitigate the effects of population aging on the retirement system. Under generous Pay-As-You-Go schemes, promised pension payouts far exceed contributions. Thus, restricting contributions is expected to reduce the burden of future benefits by accepting lower contributions today, while directing public subsidies to low-income individuals. We simulate the future evolution of the financial balance of Algeria’s retirement system under various contributable salary caps versus various scenarios of environmental evolution and potential parametric reform actions. The results demonstrated that a 40% cap, along with major parametric reforms and an ideal environment, would help achieve a cumulatively balanced system in the long run. Full article

With the aging of China’s population, the problem of pension security has become more and more prominent, and whether delayed retirement can effectively alleviate the pension fund gap and ensure the sustainability of the pension fund has become the focus of social concern. This study predicts the income and expenditure of urban workers’ basic pension insurance fund from 2021 to 2050 by constructing an actuarial model of pension insurance fund income and expenditure, and simulates the effect of delayed retirement policy. The prediction results show that under the existing system, the basic pension insurance fund for urban workers will have a shortfall for the first time in 2027, and the shortfall will expand year by year. Compared with the non-implementation of delayed retirement policy, the simulation of the implementation of a delayed retirement program delayed the emergence of the fund gap until 2029, and the forecast period of the pension fund gap significantly narrowed, indicating that delayed retirement policy has a certain positive impact on alleviating the pressure of pension payments, but delayed retirement cannot completely eliminate the pension fund gap. In view of this, this paper suggests that a progressive and flexible delayed retirement policy should be introduced as soon as possible to better adapt to the needs of different groups. At the same time, differentiated policies should be formulated for different groups of people and a pension incentive mechanism for delayed retirement should be set up to improve public acceptance of delayed retirement policy. In addition, delayed retirement policy should be combined with other measures, such as lowering the corporate contribution rate and enhancing the value-added capacity of the pension fund, so as to ensure the sustainability of the pension fund. Full article

This work presents a comprehensive analysis of the economic impact of the COVID-19 pandemic, with a focus on OECD countries and the Chilean case. Utilizing a clustering approach, the research aims to investigate how countries can be categorized based on their pandemic mitigation strategies, economic responses, and infection rates. The methodology incorporates k-means and hierarchical clustering techniques, along with dynamic time warping, to account for the temporal variations in the pandemic’s progression across different nations. The study integrates the GDP into the analysis, thereby offering a perspective on the relationship between this economic indicator and health measures. Special attention is given to the case of Chile, thus providing a detailed examination of its economic and financial indicators during the pandemic. In particular, the work addresses the following main research questions: How can the OECD countries be clustered according to some health and economical indicators? What are the impacts of mitigation measures and the pension fund withdrawals on the Chilean economy? The study identifies significant differences (p-value < 0.05%) in the GDPs and infection rates between the two identified clusters that are influenced by government measures, particularly in the banking sector (55% and 60% in clusters 1 and 2, respectively). In Chile, a rebound in the IMACEC index is noted after increased liquidity, especially following partial pension fund withdrawals, thereby aligning with discrepancies between model forecasts and actual data. This study provides important insights for evidence-based public policies, thus aiding decision makers in mitigating the socioeconomic impact of global health crises and offering strategic advice for a sustainable economy. Full article