Determinants of early-access to retirement savings: Lessons from the COVID-19 pandemic

Bateman, Hazel; Dobrescu, Isabella; Liu, Junhao; Newell, Ben R.; Thorp, Susan

doi:10.1016/j.jeoa.2023.100441

Cited by 7 publications

(4 citation statements)

References 36 publications

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“…They serve as valuable inputs in suggesting some improvements towards the current EPF retirement savings scheme, recommending thoughtful and careful considerations when formulating policies regarding early withdrawal from the retirement savings account during a crisis. The findings will also help to educate people on the importance of having adequate savings for use in old age, as some might be committing early withdrawals from their retirement savings without fully understanding the consequences of their actions, as pointed out by Lee & Hanna (2020) and Bateman et al (2023).…”

Section: Introductionmentioning

confidence: 92%

“…With regards to its usage, Bateman et al (2023) revealed that the main reason for early withdrawals in Australia is to meet immediate expenses, particularly for those experiencing loss of income. About one-quarter of the respondents also cited future financial pressures as their reason for committing early withdrawals, considering the economic uncertainties induced by the COVID-19 pandemic.…”

Section: Factors Affecting Retirement Savings Withdrawal Decisionsmentioning

confidence: 99%

“…The literature revealed that most of the studies conducted in the past on this issue focused on developed countries such as the United States and Australia, which often have an established social protection system (Butrica et. al, 2010;Argento et al, 2015;Ghilarducci et al, 2019 andBateman et al, 2023). Although there are studies conducted in Malaysia on early withdrawal from EPF retirement savings (Narayanan, 2002;Vaghefi et.…”

Section: Introductionmentioning

confidence: 99%

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Examining i-Sinar and i-Lestari Withdrawals Among Employees Provident Fund (EPF) Members During COVID-19 Crisis

Abd Ghani,

Awang,

Ab. Rashid

et al. 2023

MAJCAFE

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To cope with the economic hardship induced by the COVID-19 pandemic, the government has allowed for withdrawals from the Employees Provident Fund (EPF) retirement savings account. This paper explored the impact of COVID19 on the employment and income status of EPF members prompted them to make early withdrawals from their retirement savings through the i-Sinar and i-Lestari schemes as well as usage of withdrawals. The nonprobability convenience sampling technique, specifically the snowball technique managed to capture 2,061 respondents via an online survey. Logistic regression revealed younger respondents, those earning a lower income, and those experiencing income reduction were more likely to utilise both schemes compared to their counterparts. Although most withdrawals were put to good use, it raises concern as the early withdrawals can bring negative consequences to individuals, taxpayers, and the government in future. Findings from this study can serve as a useful input in suggesting some improvements towards the EPF retirement savings scheme.

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Section: Introductionmentioning

confidence: 92%

Section: Factors Affecting Retirement Savings Withdrawal Decisionsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Examining i-Sinar and i-Lestari Withdrawals Among Employees Provident Fund (EPF) Members During COVID-19 Crisis

Abd Ghani,

Awang,

Ab. Rashid

et al. 2023

MAJCAFE

View full text Add to dashboard Cite

show abstract

“…To that goal, first of all, literature related to the payment of unpaid work (Marska-Dzioba & Barczak, 2022;Petraki & Zalewska, 2015). The impact the withdrawal may have on people's retirement funds was either under or overestimated (Bateman et al, 2023). The relevant presumptions are then developed to be applied to the Multiple Decrement Model by emulating actual conditions.…”

Section: A Introductionmentioning

confidence: 99%

Employee Benefits Program Valuation with Multiple Decrement Model Based on PSAK 24 Post-COVID-19 Pandemic

Ekasasmita,

Rahmi,

Iskandar

2024

JTAM

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In this article, we evaluate the post-labor compensation program based on PSAK-24 in the new normal era of the COVID-19 pandemic. In order to create a table multiple decrements based on a single table decrement namely, death, withdrawal, total permanent disability, and retirement. In the new normal era of the COVID-19 pandemic, the benefits of death, death caused by COVID-19, withdrawal, total permanent disability, and retirement were then aggregated. The method used in this study is a quantitative method with a case study approach of COVID-19. The data used is secondary data on the number of COVID-19 positive cases in Indonesia from January 2021 to December 2022. In this study, an actuarial model, the Multiple Decrement Model, was applied to calculate the valuation of the post-labor compensation program based on PSAK-24 using five decrements as the cause of claims consisting of death, death cause of COVID-19, withdrawal, total permanent disability and retirement. The calculation results that can be seen that large annual net premiums multiple decrement cases that provide benefits according to the cause of failure getting bigger as that person gets older.

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Cashing out pension savings: An appropriate response to “temporary” income shortfalls?

Casey,

Mustafa

2024

J. int. comp. soc. policy

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This article examines premature withdrawals from pension funds that were initiated as responses to the COVID-19 pandemic. It looks at withdrawal programmes both in emerging market and in advanced economies. Although measures might have been expedient in countries where social protection systems (social assistance and job furlough schemes) are relatively underdeveloped, they could also be regressive. Furthermore, they undermined the concept of pension funds as retirement income resources and, in some cases, they might threaten people’s living standards once they became old. The paper also suggests that such withdrawal programmes have a populist flavour.

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Determinants of early-access to retirement savings: Lessons from the COVID-19 pandemic

Cited by 7 publications

References 36 publications

Examining i-Sinar and i-Lestari Withdrawals Among Employees Provident Fund (EPF) Members During COVID-19 Crisis

Examining i-Sinar and i-Lestari Withdrawals Among Employees Provident Fund (EPF) Members During COVID-19 Crisis

Employee Benefits Program Valuation with Multiple Decrement Model Based on PSAK 24 Post-COVID-19 Pandemic

Cashing out pension savings: An appropriate response to “temporary” income shortfalls?

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