Social Security-type programs

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SOUTH KOREA

http://www.ai-cio.com/channels/story.aspx?id=2147490265

The US$500 billion South Korean National Pension Service (NPS) has signalled its intention to hold its largest ever allocation of local securities at the expense of alternative investment options.

Next year, the NPS will build up its holding of local stocks to more than KRW 100 trillion (US$93 billion), around a fifth of its entire portfolio, according to a paper submitted the country’s National Assembly, the Korea Times reported.

This shift would move 16 percentage points more of its overall portfolio into equities. An additional KRW 60 billion would be held in foreign stocks while real estate and infrastructure allocations are to be reduced, the newspaper said, in order to build equity exposure.

The fund—which receives significant annual cash inflows—said it would also bring down its new spending on both international and local fixed income products.

However, last year, CEO Choi Kwang said he intended to boost the fund’s allocation to overseas assets to 30% over the next five years.

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AUSTRALIA

http://www.fool.com/retirement/gener...nt-crisis.aspx

The Australian solution: Work until you're 70
Australia has seen many of the same things happen to its old-age pension system that the U.S. has seen with Social Security. When Australia first implemented what it calls its age pension more than a century ago, only 4% of the nation's population lived to the age at which they could claim benefits. Now, though, life expectancies have grown, with the typical Australian living 15 to 20 years beyond the official retirement age of 65. As a result, 9% of the Australian population gets benefits from the age pension, and the potential for some of those recipients to get support from the program for two decades or more has threatened the financial stability of the system. Currently, 2.4 million Australians receive about $35 billion in benefits from the program, making it the Australian government's largest expenditure.

As a result, Australia has made plans to increase its official retirement age. Over the next 20 years or so, Australians will see the age at which they can officially retire climb to 70 if the plan is approved, putting the land down under at the top of the world's list of highest retirement ages.

When you just look at the age-pension portion of Australia's retirement system, that sounds draconian, and plenty of Australians aren't thrilled about the move. With a significant part of Australia's economy based on extracting natural resources like oil, natural gas, coal, and various metals, the back-breaking work that many Australians do makes the prospect of staying on the job until 70 seem almost physically impossible. Proponents of the measure counter that argument with the fact that 85% of Australians work in the services industry, and many of those jobs don't require the physical exertion that makes them impractical for those in their 60s.

Moreover, younger Australians worry about the need for older workers to stay on the job longer. Many fear a "jobless generation" of young adults who can't get their older counterparts to give way and make room for them to start their careers.

What Australians have that the U.S. doesn't
Yet before you bemoan the fate of the Australian public, it's important to keep in mind that the age pension system isn't the only resource they have going for them. In addition, Australians participate in what's known as the superannuation system, under which employers are required to make contributions toward superannuation retirement accounts equal to 9.5% of their pay. Like American 401(k)s, employees are allowed to select investment options for this money, with default provisions usually investing in a balanced-fund investment. In addition, employees can make additional contributions of their own to their retirement accounts.

Over time, superannuation assets have built up impressively. As of June 30, assets in superannuation accounts rose to A$1.85 trillion. Australia is also seeking to have those fund balances rise more quickly by requiring more from employers on the superannuation front. Over the next seven years, the employer contribution rate will rise to 12%, accelerating the growth of this important part of Australians' retirement planning.

Like 401(k)s and IRAs in the U.S., Australians can make withdrawals from their superannuation accounts at earlier ages than they can claim pensions. For those born before mid-1960, access to their retirement savings opens at age 55. That age is slated to rise to 60 over the next decade, but it will still give Australians access to money well before age pensions become available to help them bridge the financial gap.

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Well, more like welfare for old people, but I figure this is what Social Security will become...

PERU
http://nypost.com/2014/11/03/118-yea...s-for-pension/

Better late than never.
A 118-year-old Peruvian woman began working in 1903 — but has only now become eligible for her $32-a-month state pension, Central European News reports.
“Once I was too young, another time I had too much money,” said Andrea Cahuana, who was born May 25, 1896. “Sometimes I thought I’d die waiting.”

The supercentenarian from Arequipa was twice turned down for a pension. Peruvians are only eligible for pensions if they are at least 100 and extremely poor.

She finally met the stringent criteria.

“Her case came to the surface again and we had another look at her circumstances,” pension official Jose Villalobos said. “We are very happy to say she now qualifies.”

But Cahuana, who has outlived eight of her 12 children, still has to wait a little more. Her first check won’t arrive for another couple of months.
“Let’s hope I make it that long so I can enjoy it,” she quipped.

[Gandalf]

She's older than the official world's oldest person, who is 116. That link mentions a Mexican woman claiming to be 127, but has no birth certificates. There are others over 120 with no birth certificates.

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:hand wavey stuff:

Look, if I want to put in a color piece, don't point out it's full of lies.

Evidently all sorts of really old ladies are being discovered in Peru:
http://www.aljazeera.com/news/americ...237513184.html

Peru's government has claimed that one of its citizens could be the new Guiness record holder for world's oldest woman.

While it is yet to be confirmed, 116-year-old Filomena Taipe, who lives in the small and impoverished village of Pucuto, was "discovered" by officials as part of a campaign to help elderly people in poor conditions.

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ISLE OF MAN

http://www.theguardian.com/money/201...pension-age-74

The Isle of Man government is considering raising the state pension age to 74, in a bid to keep up with increasing life expectancy and ensure the island’s national insurance fund does not run out of cash. The move, which will affect anyone born since 2011, is among a number of measures outlined in a review of the island’s social security and national insurance schemes, and will break the link with the UK’s pension system.

Currently, the state pension age in the Isle of Man is the same as that in the UK. Male workers can draw their state pension at 65, and in 2018 the female retirement age will rise to the same level. Further increases are already in the pipeline in both which will bring the pension age to 67 by 2028. However, the Isle of Man Treasury said a bold transformation of the system was required to make it meet the island’s needs and protect the future of state pensions and benefits.

A review, compiled by an independent consultancy, predicted that without change the Manx National Insurance Fund, from which the state pension is paid, would be exhausted by 2047 – seven years earlier than previously projected. The review predicted that the cost of providing pensions was set to grow from just over £100m in 2012 to over £1.1bn in 2072 as the number of residents above state pension age increased from 17,295 to 29,696. Although the population of the island is set to rise, the proportion of retirees is predicted to increase from 20% to 27%.

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IRELAND

http://www.irishtimes.com/business/e...emes-1.2050380

The contributory State pension is a weekly payment made to people aged 66 or older who have made the required PRSI contributions during their working lives. To qualify for the maximum payment, the recipient must have made at least 520 PRSI contributions (10 years) and have at least an average of 48 contributions made per year.

The payment is not means-tested as it is based solely on contributions.

The maximum weekly rate is €230.30 and recipients can also claim for an adult dependant (€206.30) ie a spouse, civil partner or cohabitant, or a child dependant (€29.80).

The State pension (non-contributory) is a means-tested weekly payment to people aged 66 or older who do not have the required PRSI contributions to claim a contributory State pension, but whose means are considered low enough to qualify for State pension assistance.

To qualify, the recipient must:
(i) not qualify for a contributory State pension payment
(ii) pass a means test and
(iii) meet the habitual residence condition.

In assessing means for the non-contributory State pension, the first €20,000 of capital and €200 in weekly earning is exempted from the means test.

The maximum weekly rate is €219, and recipients can also claim for an adult dependant (€144.70) and a child dependant (€29.80).

http://www.irishtimes.com/business/e...ered-1.2049998

A cut in the basic rates of the State pension must be considered as an option to ensure its sustainability, officials at the Department of Public Expenditure and Reform have argued.
An expenditure review drawn up by departmental officials has expressed strong concerns about the future of expenditure levels on the State contributory and non-contributory pensions, and related universal benefit schemes for older people.
It has suggested that, without changes and in the face of demographic pressures, the State could have to provide annual increases in funding of nearly €200 million in these areas up to 2026.

......
However, it warned that as expenditure on the State pensions was likely to increase by €195 million a year in the medium term, “a cut of €8.50 per week on the two State pension schemes will only offset those demographic pressures for one year”.
Other pension reform options put forward by the departmental paper included scrapping the €10 per week top-up pension payment for people over 80.
It also suggested bringing forward the scheduled dates for raising State pension eligibility and abolishing the free TV licence.
......
The paper warned of the strains growing demographic pressures were placing on funding the pension schemes and related benefit packages.
In the 10 years to 2013 the number of people receiving contributory or non-contributory pensions increased by 115 per cent to 420,000.
The department said the number of people aged 65 and over was projected to increase from 570,000 in 2013 to 855,000 in 2026.
The expenditure review paper of the State pension and related schemes said the views expressed were not the official views of the Minister or the department.

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AUSTRALIA

http://www.smh.com.au/business/the-e...12-1427y1.html

People with $10m homes shouldn't get the age pension, says former government adviser John Freebairn

People who own $10 million-dollar homes shouldn't be able to get the age pension, and the money saved by cutting their access should go to lower-income people, says a former adviser to the Henry tax review.

Melbourne University economics professor John Freebairn, who was an influential adviser to former treasury secretary Ken Henry's tax review when Labor was in government, also hit back at Treasurer Joe Hockey's comments that people should be able to tap into their super to buy housing.

<i>Illustration: Cathy Wilcox</i>
Illustration: Cathy Wilcox
The idea has already been slammed by the architect of Australia's superannuation system, former prime minister Paul Keating, the head of the Coalition's financial system inquiry David Murray, and former Howard government treasurer Peter Costello.

Communications Minister Malcolm Turnbull has also declared any attempt to allow first home buyers to use their super savings for a deposit to be a "thoroughly bad idea".

Mr Murray said this week that the idea was "inconsistent" with boosting retirement incomes, potentially later forcing people to sell their home to fund their retirement, which "would not be an attractive solution".

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RUSSIA
RETIREMENT AGE

http://news.yahoo.com/russia-ponders...QDBHNlYwNzcg--

Moscow (AFP) - Taking care of pensioners who are his bedrock of support has been a key feature of President Vladimir Putin's rule, but as crisis bites, the Russian government is mooting an idea that has been taboo for 80 years: raising the retirement age.

Since 1932, Russian men have been eligible to retire at the age of 60 and women at the age of 55. In numerous professions, especially hazardous ones like mining, people may retire even earlier.

But the budget has come under strain as people have started to live longer, as Russian women now have a life expectancy of 76 and men 65.

Now, faced with a shrinking economy thanks to Western sanctions over Ukraine, an oil price that is half of what it was a year ago and a weak ruble, even Putin is cautiously bringing up the subject, which threatens to unleash protests and hurt his high ratings.

"The retirement age is one of the key issues," the president said in his annual phone-in session earlier this month. In 2016, Russia will have to spend three percent of its gross domestic product (GDP) on pensions -- over $50 billion -- he said.

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AUSTRALIA
MEANS TESTING

http://www.skynews.com.au/news/top-s...sset-test.html

The federal government is being urged to target the family homes of pensioners for budget savings.

The Centre For Independent Studies argues it's unfair that rich and poor are being treated the same.

It claims its controversial proposal will leave an overwhelming majority of pensioners better off.

Under its proposition, the family home will be included in the assets test for age pension eligibility, and seniors encouraged to unlock the value of their property and use it to support themselves in retirement.

The reverse mortgage system would generate $14 billion in yearly savings, with almost half of those on the full pension moving onto the part-rate, while many others would no longer get support.

However, the centre says nearly all pensioners will benefit as their incomes rise by an average of $5900 a year under its proposal.

- See more at: http://www.skynews.com.au/news/top-s....L0Wrq3pl.dpuf