Author(s)

Jiewen Xiang ¹

Affiliation(s)

¹ School of Economics, Institute of Population Development and Health Governance, Hangzhou Normal University, Hangzhou, Zhejiang, 311121, China

Corresponding Author

Jiewen Xiang

ABSTRACT

It seems that early access to pension funds provides more flexibility for contribution payers in the short term, but may jeopardize the retirement savings in the long term. In practice, there are dozens of countries allowing this policy for several years. How to balance short-term and long-term profit and loss? Why could so many countries allow early withdrawals so liberal? What are the advantages and disadvantages of early access? Is it possible for China to ease the restrictions of early access to pension funds? This article tries to answer these questions and get the enlightenment to China from international experiences by analyzing the advantages and disadvantages of early withdrawal in different types.

KEYWORDS

Early access; Pension funds; Advantages and disadvantages; Enlightenment

CITE THIS PAPER

Jiewen Xiang, Study on the Advantages and Disadvantages of Early Access to Pension Funds and Its Enlightenment to China. Social Security and Administration Management (2021) Vol. 2: 1-7. DOI: http://dx.doi.org/10.23977/socsam.2021.020101.

REFERENCES

[1]Munnell, Alicia, Annika Sundén, and Catherine Taylor, “What Determines 401(k) Participation and Contributions?” Center for Retirement Research at Boston College Working Paper 2000 (December).
[2]HM Treasury, Early access to pension savings, https://hm-treasury.gov.uk, 2010.
[3]Robert Argento, Victoria L. Bryant, John Sabelhaus, "Early withdrawals from retirement accounts during the Great Recession," Finance and Economics Discussion Series 2013-22, Board of Governors of the Federal Reserve System (US), 2013.
[4]World Bank Group, Early Access to Pension Savings: International Experience and Lessons Learnt. Finance, Competitiveness and Innovation Insight, World Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/31356 License: CC BY 3.0 IGO, 2019. 
[5]Kim, Seonghoon & Koh, Kanghyock, "Does Early Access to Pension Wealth Improve Health?," IZA Discussion Papers 13184, Institute of Labor Economics (IZA),2020.
[6]Amromin, Gene & Smith, Paul, "What Explains Early Withdrawals From Retirement Accounts? Evidence From a Panel of Taxpayers," National Tax Journal, National Tax Association; National Tax Journal, vol. 56(3), pages 595-612, 2003.
[7]Holzmann R, Hinz R, et al, Old Age Income Support in the 21st Century: An International Perspective on Pension Systems and Reform. World Bank. ISBN: 9780821360408, 2005.

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