Advanced Search
MyIDEAS: Login

Retirement Saving and Redistribution

Contents:

Author Info

  • Alexis Direr

    (Université de Grenoble and Paris School of Economics, INRA)

Registered author(s):

    Abstract

    The Plan dÉpargne Retraite Populaire (PERP), introduced in 2003, occupies a central position among French funded retirement-savings instruments. We examine its redistributive power by calculating the return on a PERP for standard situations that vary according to socio-occupational category, sex, and marginal tax bracket. We use the concept of internal rate of return (IRR), i.e., the discount rate at which the present value of total expected returns will match the total cost of the investment. The return gaps are wider between socio-occupational categories than between sexes. Other inequalities are due to the PERP tax regime, which exempts contributions from income tax while holders are economically active, then taxes annuities during retirement. Tax gains do not rise in a linear profile with income but fluctuate depending on the bracket on retirement. It is thus hard to characterize the impact of taxation as regressive or progressive.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.insee.fr/fr/ffc/docs_ffc/ES417-418f.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.

    Volume (Year): 417-418 (2009)
    Issue (Month): (June)
    Pages: 119-133.

    as in new window
    Handle: RePEc:crs:ecosta:es417-418f

    Contact details of provider:
    Postal: 18 Boulevard Adolphe Pinard, 75675 Paris Cedex 14
    Phone: 01 41 17 50 50
    Web page: http://www.insee.fr
    More information through EDIRC

    Related research

    Keywords: Personal Finance; Life Cycle Models and Saving; Annuity Markets;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:crs:ecosta:es417-418f. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (D3E).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.