1 aging and solidarity in the united states : what we can learn and transfer to the european union?...
TRANSCRIPT
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Aging and solidarity in the United
States :
What we can learn and
transfer to the European
Union?
Nyleñka PailleJihann KheladiTachrifa MaoulidaMorganne Van Den BergheMagali LecompteGuillaume Tlalka
Finland 2013
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SUMMARY
Overview of the American economy
Evolution of the elderly’s part in the United States
Place of the elderly in the American society
The US pension schemes
What reforms may be applied in Europe ?
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Overview of the American economy
World's largest economy with dynamic sectors
The largest importer of goods and third exporter
Unemployment rate : 7.7 %
HDI : 0.910 => 3rd rank
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Evolution of the elderly’s part in the United States
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Evolution of the elderly’s part in the United States
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Evolution of the elderly’s part in the United States
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Place of the elderly in the American society
Nearly 1/5 of the Americans continue to work beyond 65 years
Thus, one of the first activities of the elderly is work, with the opportunity to change careers or pursue new interests
They are involved in the community and are active members of many associations
Individualistic society that puts “apart” the elderly
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The US pension schemesSocial Security
96% of American employees contribute to the social insurance scheme
The pensions provided by the Social Security are calculated based on the number of years worked, contributions and inflation
The payment of benefits is based on what the employee has earned during his/her career
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The US pension schemesSocial Security
The benefit can also be affected by the age at which the employee decides to retire.
Date of birth Age of retirement at the full rate
1943 to 1954 66 years old
1955 66 years and 2 months
1956 66 years and 4 months
1957 66 years and 6 months
1958 66 years and 8 months
1959 66 years and 10 months
1960 and thereafter
67 years
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The US pension schemesSocial Security
This plan must be funded solely from contributions levied on wages (that are the same between employers and employees)
Employee contributions are collected at the same time and by the same channels as the income tax. That’s why they are seen as tax and not as contributions
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The US pension schemesSocial Security
To enjoy a comfortable retirement, a person will need 70 to 80 % of his/her income. Social Security will replace about 40 percent of previous income.
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The US pension schemesPensions provided by firms
Today, about 21% of the private sector employees and 71% of employees of state are members of a pension plan with defined benefits. These rates are declining
The private pension plans are guaranteed by employers, or by employers and unions
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The US pension schemesFunded pension
Funded pension operates on the principle of accumulation by workers of a stock of capital used to finance the future pensions
To variations of capital due to purchases, sales and reinvestment of the revenues is added variations depending on the overall economic situation, on bubbles that increase the capital gain, and on crisis that reduce it
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The US pension schemesAdditional federal aid
The poorest pensioners receive additional federal aid (the OASDHI) and care (Medicare)
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The US pension schemes
Income structure of the elderly by income quintile, 2010
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What reforms may be applied in Europe ?
Adapting the statutory retirement age and contributions to longevity
Increasing the effective retirement age by eliminating early exit pathways from the labor market
A higher participation rate for women
Developing multi-pillar systems to release the load on the public liabilities
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Lowering benefits on existing pension schemes
Promoting the creation of new jobs towards the elderly (companionships, etc.)
What reforms may be applied in Europe ?
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Conclusion The American system is in crisis, notably because the
part of the pension provided by the Social Security is very low and isn’t sufficient to survive.
Concerning the pensions provided by the firms, many people are not eligible. That’s why many people have to work after retiring, because they don’t have enough money to survive.
Finally, Americans are very individualistic and don’t want to pay more tax so that helping each other.
Thank you for your attention
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