05. Not only earnings
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This document discusses different forms of income, savings, and pension funds. It defines income as earnings from wages, salaries, profits, interests, rents and other sources over a period of time. Disposable income is income after taxes, which can be spent on consumption or saved. Savings are the part of disposable income that is not spent and can be used to avoid future problems or improve income. The document also discusses why individuals and societies need to save, such as for crises, changes in demographics, and the evolution of social security systems. It describes different types of pension funds like TFR, additional private funds, and how they work.
05. Not only earnings
- 1. NOT ONLY EARNINGS: INCOMES, SAVINGS AND PENSION FUNDS Fabio Frignani & Michele Malavasi 4^ AM I.T.E. A. Manzoni Suzzara
- 2. It is the sum of all the wages, salaries, profits, interests payments, rents, and other forms of earnings received in a period of time. INCOME Y = Yd + T Y = Income T = Taxes Yd = Disposable Income
- 3. It is the amount of money that a person receives for his work ARNING
- 4. OTHER FORMS OF EARNING PROFIT INTERESTS PAYMENT OTHER WAYSRENTS
- 5. It could be spent on consumption; otherwise we have savings. DISPOSABLE INCOME It is the part of disposable income we dont spend. If we spend more we have a debt and have to ask for a loan.
- 6. We have unlimited needs and we could classify them by their urgency: - Primary - Secondary - Luxury OUR NEEDS
- 7. J. M. Keynes argued that people save money because of 3 reasons: - For transaction: to buy goods and services - For precaution: to avoid future troubles - For speculation: to improve income WHY DO WE SAVE MONEY?
- 8. WHY DO WE HAVE TO SAVE MONEY? Crisis Collapse of social security institutions Evolution of work
- 9. CRISIS It causes an increasing of unemployment There are less workers that pay contributions, but there are also more retirees that retire.
- 10. The State has to pay more public pensions for a larger period of time so it has less money and it has to decrease them. Different causes: - Population is changing - Trend of job market - Increase of public debt THE COLLAPSE OF SOCIAL SECURITY INSTITUTIONS
- 11. Italian population is becoming older and it causes the collapse of social security institutions. POPULATION IS CHANGING Less workers More costs
- 12. In 2011 there was a crisis of public deficit so European Union decided to stop compensating Social Security lack of funds. THE CHANGE There was a reform of retirement benefits in the same year.
- 13. REFORM OF RETIREMENT BENEFITS Increase of retirement age Decrease of the amount of money received by retirees
- 14. Retirement benefits are not enough to ensure retirees to have a wellbeing as before. THE CURRENT SITUATION OF PUBLIC PENSION They have to save money by using other forms of pensions funds.
- 15. It is the amount of money that the employer has to pay when employment relationship ends. Every employee saves a part of his annual income and could receive it at the end of employment. From 2007 it could be invested in: -Companies -Social Security Institution -Additional Pension Funds T.F.R.
- 16. The sum of money received at the end of his work life depends on: - The quantity of contributions paid - The period of payments Private pension funds invest money in safe bonds and promise interests. ADDITIONAL PENSION FUNDS
- 17. DIFFERENT TYPES OF ADDITIONAL PENSION FUNDS PIP Close Open They have to follow financial regulations because of their social security purpose IT IS USEFUL TO JOIN THEM
- 18. Thanks for your attention