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Savings and wealth in the UK: evidence from micro-data

Author

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  • James Banks

    (Institute for Fiscal Studies and University College London)

  • Sarah Smith

    (Institute for Fiscal Studies and Centre for Market and Public Organisation)

Abstract

The late 1980s saw a dramatic fall in personal saving rates in Britain and the United States which attracted the attention of academics and policymakers alike. The period was also marked by a number of important structural changes, any or all of which could have had an impact on personal saving behaviour. Included among these are systematic changes in the demographic structure of the population, female labour supply, productivity growth, financial liberalisation and the degree of inequality in household incomes. These changes, coupled with the decline in personal saving, led many commentators to pronounce that the ‘baby-boom’ generation (i.e. those currently middle-aged) were not saving enough for their retirement — a concern heightened by growing fears over the future of the state pension system, given current social and political attitudes.

Suggested Citation

  • James Banks & Sarah Smith, 1996. "Savings and wealth in the UK: evidence from micro-data," Fiscal Studies, Institute for Fiscal Studies, vol. 17(2), pages 37-64, January.
    • Handle: RePEc:ifs:fistud:v:17:y:1996:i:2:p:37-64
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    File URL: http://www.ifs.org.uk/fs/articles/fsbanksandtanner.pdf
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    References listed on IDEAS

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    7. Hochgürtel, S. & Alessie, R.J.M. & van Soest, A.H.O., 1995. "Household portfolio allocation in the Netherlands : Saving accounts versus stocks and bonds," Other publications TiSEM 83603afa-eb12-429b-94aa-7, Tilburg University, School of Economics and Management.
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    Cited by:

    1. Cummins, Neil, 2021. "Where Is the Middle Class? Evidence from 60 Million English Death and Probate Records, 1892–1992," The Journal of Economic History, Cambridge University Press, vol. 81(2), pages 359-404, June.
    2. D. Leece, 1999. "Applying data visualization and knowledge discovery in databases to segment the market for risky financial assets," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(5), pages 267-280.
    3. Ms. Sònia Muñoz, 2006. "Wealth Effects in Europe: A Tale of Two Countries (Italy and the United Kingdom)," IMF Working Papers 2006/030, International Monetary Fund.
    4. Orazio P. Attanasio & Thomas DeLeire, 2002. "The Effect Of Individual Retirement Accounts On Household Consumption And National Saving," Economic Journal, Royal Economic Society, vol. 112(6), pages 504-538, July.

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