Developments in Retirement Provision: Global Trends and Lessons from Australia and the US

Retirement systems should be conceived of as long-term financial contracts under which workers' contributions today are exchanged for benefits paid to the elderly tomorrow. Such contracts are said to be well-managed if the transactions are handled in an affordable, reliable, and efficient manner. Yet all pension systems are forced to operate under a multitude of constraints including participants' ability and willingness to save; the availability of assets with which to convert current saving into future retirement benefits; the limitations of imperfect capital markets; political influences imposed by stakeholders; county macroeconomic conditions; and as we are becoming increasingly aware, global business cycles. If pensions are to continue to meet the needs of an aging world, it is imperative to prepare for emerging challenges as these systems evolve through time. In these remarks we first show how global demographic change is driving pension change throughout the world. Next we describe and compare developments in old-age provision over the last decade in Australia and the United States, and outline the key issues facing retirement systems in both nations. There are many differences between the experiences of the two countries, but as we shall show there are also common themes. Finally we identify key pension reform design issues facing Australia and the US in the upcoming decades.

The automorphism group of the free group of rank two is a CAT(0) group

We prove that the automorphism group of the braid group on four strands acts faithfully and geometrically on a CAT(0) 2-complex. This implies that the automorphism group of the free group of rank two acts faithfully and geometrically on a CAT(0) 2-complex, in contrast to the situation for rank three and above.Comment: 7 pages, 2 figures. The manuscript has been modified in minor ways in accordance with a referee's recommendations, and a misattribution of the result "Aut F_2 is biautomatic" has been correcte

Aged-Care Support in Japan: Perspectives and Challenges

This study explores economic aspects of the market for long term care (LTC) with a special focus on Japan. First, we describe the LTC system in Japan as presently implemented, and we highlight some aspects of the program that are novel and potentially of interest to other countries seeking models for long-term care provision. Next, we discuss alternative projections of Japanese LTC utilization and costs. Finally, since Japan appears likely to experience important shortfalls in LTC in the future, we discuss whether such services might be more efficiently organized and financed under alternate forms of provision.

Socially Responsible Investment in Japanese Pensions

As the level of retirement-related assets has grown, so too has public and private interest in so-called "Socially Responsible Investment" (SRI), an investment strategy that employs criteria other than the usual financial risk and return factors when selecting firms in which to invest. This study evaluates whether SRI indexes would alter portfolio risk and return patterns for the new defined contribution pension plans currently on offer in Japan. We conclude that SRI funds can be included as an option, albeit with some cost; consequently, mandatory investment in SRI portfolios cannot reasonably be justified.

Financial Innovation for an Aging World

Over the last half-century, around the world, many nations have seen plummeting fertility rates and mounting life expectancies. These two factors are the engine behind unprecedented global aging. In this paper, we explore how the demographic transition may influence financial markets and, in turn, how financial market innovation might help resolve concerns flowing from global aging trends. We first provide context by reviewing the economics, finance, and insurance-related literature on how global aging patterns may influence capital markets. We then turn to insurance markets, and discuss a range of products and policies, including both retail and wholesale financial offerings for various forms of life annuities, long-term care benefits, reverse mortgages, securitization of longevity risk, inflation-protected assets, reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps and longevity derivative contracts. We also indicate how new public-private partnerships might be beneficial in enhancing the future environment for old-age risk management.

A Community Guide for Opposing Hate

The purpose of this manual is to provide those who want to "do something" about hate the something they can do, step by step, not only for the immediate aftermath of a hateful act, but for years to come to improve their community.Our goal here is to provide different organizations in different regions—small rural coalitions, nongovernmental organizations (NGOs) in larger cities, and everything in between—the best practices to combat hate and hate groups. Some of the strategies are reactive, but the most important ones are proactive—organizing so when hate comes to town, it has a lesser chance of success

Unlocking Housing Equity in Japan

Much prior literature on asset patterns among the elderly has mostly overlooked housing wealth as a determinant of retiree wealth, particularly in the Japanese context. Yet releasing equity in housing may be a natural mechanism to boost consumption, reduce public pension liability, and mitigate the demand for long-term care facilities in Japan. Our study evaluates what might be needed to implement reverse mortgages (RMs) in this country. Policies could include exempting RMs from capital gains tax and transactions tax, along with mechanisms to make annuity income flows nontaxable, along with interest rate accruals for RMs. In addition, housing market reforms to enhance information flows would be needed, particularly regarding new and existing housing trades, which could permit the securitization of housing loans and lines of credit. Other improvements in capital markets could also help, including the establishment of reinsurance mechanisms to help lenders offer these reverse mortgages while having some protection against crossover risk. In the Japanese case, demand for RMs will be dampened by declining residential housing values as well as low interest rates and long life expectancies. Nevertheless, we conclude that RMs can be a good way to finance elderly consumption in Japan, particularly against the backdrop of governmental financial stringencie

Achieving Efficient Strong Scaling with PETSc using Hybrid MPI/OpenMP Optimisation

The increasing number of processing elements and decreas- ing memory to core ratio in modern high-performance platforms makes efficient strong scaling a key requirement for numerical algorithms. In order to achieve efficient scalability on massively parallel systems scientific software must evolve across the entire stack to exploit the multiple levels of parallelism exposed in modern architectures. In this paper we demonstrate the use of hybrid MPI/OpenMP parallelisation to optimise parallel sparse matrix-vector multiplication in PETSc, a widely used scientific library for the scalable solution of partial differential equations. Using large matrices generated by Fluidity, an open source CFD application code which uses PETSc as its linear solver engine, we evaluate the effect of explicit communication overlap using task-based parallelism and show how to further improve performance by explicitly load balancing threads within MPI processes. We demonstrate a significant speedup over the pure-MPI mode and efficient strong scaling of sparse matrix-vector multiplication on Fujitsu PRIMEHPC FX10 and Cray XE6 systems