9 ELEPHANT IN THE ROOM From the begining of the 20th century the poor and the illiterate have become minority after having been for centuries a majority.
2013.March10 ELEPHANT IN THE ROOM 21 st century-lengthening of the life cycle is a unique revolutionary phenomen.
2013.March11 LIFE EXPECTANCY- LONGEVITY CHALLENGES Longevity risks: Health situation; Possible long-term care; PatricM.LIEDTKE 2010.
2013.March12 LIFE EXPECTANCY- LONGEVITY CHALLENGES Longevity risks ex ante: What entitlements are worth? What kind of products and services might be available in exchange for future capital as it is used up? At which price?
The countdown to retirement Acording to survey from HSBC, which polled more then 15 000 people in the 15 countries, 5% of polled think that they are prepearing adequatly for a comfortable retirement; 23% - preparing adequatly for retirement; 33% - not adequatly prepearing for retirement; 34%- not at all prepearing for retirement. (Christine Foyster,HSBC” THE TIMES” 02/20/13) 2013.March13
The countdown to retirement Once you are fully retired, what proportion of your retirement income do you expect will be funded from each of the following sources? (Christine Foyster,HSBC,02.20.2013.) 2013.March14
s sources 1 Company pensions 2. Selling a business 3. Property income 4. Inheritance 5 State pension/benefits 6. Investments 7. Financial support from family or friends 8. Other tools,e.g.windfall 9. Personal pensions 10. Lottery 11. Cash savings/deposits 152013.March
16 The countdown to retirement sources% 1. State pension/benefits 42.0 2. Company pensions 25.0 3. Personal pensions 10.0 4. Cash savings/deposits 9.0 5. Properety income 5.0 6. Inheritance 4.0 7. Investments 3.0 8. Financial support from family or friends 0.5 9. Other tools,e.g.windfall 0.5 10 Lottery 0.5 11. Selling a business 0.5
Sorces of capital in Latvia STATE PENSIONSTATE PENSION STATE FUNDED PENSIONSSTATE FUNDED PENSIONS PERSONAL PENSIONS:PERSONAL PENSIONS: 1.Pension funds 2.Insurance 2013.March17
2013.March18 PLANNED AND ACTUAL CAPITAL TIER 2 in Latvia 2006.-2010. %,Ls Year Actual Actual statutory rate,% Actual Actual statutory rate,Ls before Statutory rate before change,% before Statutory rate before change,Ls 2006 2.041.32.041.3 2007 4.0112.34.0112.3 2008 8.0265.88.0265.8 20092.0164.79.0741.2 20102.065.910.0329.5
2013.March19 SORCES OF CAPITAL STATE FUNDED PENSIONS-Tire2STATE FUNDED PENSIONS-Tire2 1 149755 1 149755 participants participants PERSONAL PENSIONS-Tire3PERSONAL PENSIONS-Tire3 193 500 participants 193 500 participants
2013.March20 conclusions 1.The biggest challange of the 21st century: an ageing population (longevity); 2.Longevity risks: health situation and possible long-term care; 3.Longevity risks ex ante: What entitlements are worth? What kind of products and services might be available in exchange for future capital as it is used up? At which price?; 4.The main sorces of retirement capital: state pension, company pensions, personal pensions (Pension funds, Insurance)
2013.March21 solutions 1.The Four Pillar Pension Programme 2.The Four Pillar_ Share of income from the four pillars of people over 65 years ; 3.Life cycle: a new distribution of activities;
The Four Pillar – research Programme The 1st pillar- STATE PENSION; The 2nd pillar-OCCUPATIONAL PENSION; The 3rd pillar- INDIVIDUAL PENSION; The 4th pillar-FLEXIBLE EXTENSION OF WORK-LIFE ( The Geneva Association 1987) 2013.March22
2013.March23 Shere of income from the four pillars of people over 65 years 20002020 First Pillar 55% Second Pillar 30% Third 10% First Pillar 40% Second Pillar 35% Third 10% Fourth 15%
2013.March24 Live cycle: A NEW DISTRIBUTION OF ACTIVITIES Traditional distribution of activities Modern distribution of activities Educ- ation and training Work Retir- ement Education and training Work Family,leisure,community
2013.March25 Paldies par uzmanību ! aija.graudina@ ba.lv ;