IDEAS home Printed from https://ideas.repec.org/a/taf/nzecpp/v50y2016i1p29-50.html
   My bibliography  Save this article

Retirement income policy and national savings

Author

Abstract

This paper examines the implications for national savings of three retirement income policy options designed to improve the fiscal sustainability of New Zealand Superannuation (NZS). A simple model is developed that employs population and longevity projections allowing estimation of the contributions that many overlapping age cohorts might make to national savings in response to policy change. Government contributions to national savings, resulting primarily from reduced NZS payments, are also considered. Results suggest that even seemingly modest changes to retirement income policies could lead to substantial cumulative changes in national savings by 2061.

Suggested Citation

  • David Law, 2016. "Retirement income policy and national savings," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(1), pages 29-50, April.
    • Handle: RePEc:taf:nzecpp:v:50:y:2016:i:1:p:29-50
    DOI: 10.1080/00779954.2015.1080753
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00779954.2015.1080753
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00779954.2015.1080753?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Klaus Schmidt-Hebbel, 1998. "Does Pension Reform Really Spur Productivity, Saving, and Growth?," Working Papers Central Bank of Chile 33, Central Bank of Chile.
    2. Jagadeesh Gokhale & Laurence J. Kotlikoff & John Sabelhaus, 1996. "Understanding the Postwar Decline in U.S. Saving: A Cohort Analysis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(1), pages 315-407.
    3. Feldstein, Martin S, 1974. "Social Security, Induced Retirement, and Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 905-926, Sept./Oct.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Talosaga Talosaga & Mark Vink, 2014. "The Effect of Public Pension Eligibility Age on Household Saving: Evidence from a New Zealand Natural Experiment," Treasury Working Paper Series 14/21, New Zealand Treasury.
    2. Creedy, John & Gemmell, Norman & Scobie, Grant, 2015. "Pensions, savings and housing: A life-cycle framework with policy simulations," Economic Modelling, Elsevier, vol. 46(C), pages 346-357.
    3. Victoria IORDACHI & Mariana Rodica TIRLEA, 2016. "Use Of Presumptive Taxation In Facilitating Small Business Tax Compliance," ECONOMY AND SOCIOLOGY: Theoretical and Scientifical Journal, Socionet;Complexul Editorial "INCE", issue 3, pages 11-19.
    4. Anne-Marie Brook, 2014. "Options to Narrow New Zealand’s Saving – Investment Imbalance," Treasury Working Paper Series 14/17, New Zealand Treasury.
    5. Creedy, John & Gemmell, Norman & Scobie, Grant, 2015. "Pensions, savings and housing: A life-cycle framework with policy simulations," Economic Modelling, Elsevier, vol. 46(C), pages 346-357.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kotlikoff, Laurence J., 2002. "Generational policy," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 27, pages 1873-1932, Elsevier.
    2. Douglas W. Elmendorf & Louise Sheiner, 2000. "Should America save for its old age? Population aging, national saving, and fiscal policy," Finance and Economics Discussion Series 2000-03, Board of Governors of the Federal Reserve System (U.S.).
    3. Grant M Scobie & John K Gibson, 2003. "Household Saving Behaviour in New Zealand: Why do Cohorts Behave Differently?," Treasury Working Paper Series 03/32, New Zealand Treasury.
    4. Catalan, Mario & Impavido, Gregorio & Musalem, Alberto R., 2000. "Contractual savings or stock market development - Which leads?," Policy Research Working Paper Series 2421, The World Bank.
    5. Seth G. Benzell & Eugene Goryunov & Maria Kazakova & Laurence J. Kotlikoff & Guillermo LaGarda & Kristina Nesterova & Andrey Zubarev, 2015. "Simulating Russia’s and Other Large Economies’ Challenging and Interconnected Transitions," NBER Working Papers 21269, National Bureau of Economic Research, Inc.
    6. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff & John Edward Sabelhaus & David N. Weil, 1994. "The annuitization of Americans' resources: a cohort analysis," Working Papers (Old Series) 9413, Federal Reserve Bank of Cleveland.
    7. Impavido, Gregorio & Musalem, Alberto R., 2000. "Contractual savings, stock, and asset markets," Policy Research Working Paper Series 2490, The World Bank.
    8. Cerda, Rodrigo A., 2008. "Social Security and Wealth Accumulation in Developing Economies: Evidence from the 1981 Chilean Reform," World Development, Elsevier, vol. 36(10), pages 2029-2044, October.
    9. Marek Loužek, 2006. "Má důchodová reforma se zadlužením smysl? [Has pension reform with indebtedness a sense?]," Politická ekonomie, Prague University of Economics and Business, vol. 2006(2), pages 247-260.
    10. Jagadeesh Gokhale & Laurence J. Kotlikoff, 2002. "The Impact of Social Security and Other Factors on the Distribution of Wealth," NBER Chapters, in: The Distributional Aspects of Social Security and Social Security Reform, pages 85-114, National Bureau of Economic Research, Inc.
    11. Seth G. Benzell & Eugene Goryunov & Maria Kazakova & Guillermo Lagarda & Kristina Nesterova & Laurence J. Kotlikoff, "undated". "Simulating Russia’s and Other Large Economies’ Challenging and Interconnected Transitions," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-274, Boston University - Department of Economics.
    12. Sita Slavov & Devon Gorry & Aspen Gorry & Frank N. Caliendo, 2019. "Social Security and Saving: An Update," Public Finance Review, , vol. 47(2), pages 312-348, March.
    13. Arthur Hau, 2001. "Precautionary Saving and Mortality-Contingent Social Insurance Programs," Public Finance Review, , vol. 29(1), pages 61-82, January.
    14. Frank N. Caliendo, 2009. "Is Social Security behind the Collapse of Personal Saving?," CESifo Working Paper Series 2746, CESifo.
    15. Feldstein, Martin & Liebman, Jeffrey B., 2002. "Social security," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 32, pages 2245-2324, Elsevier.
    16. Lopez, Fernando Lera, 1999. "Recent decline in family savings rate: possible Explanations," ERSA conference papers ersa99pa098, European Regional Science Association.
    17. Axel Börsch‐Supan, 2000. "Was lehrt uns die Empirie in Sachen Rentenreform?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 1(4), pages 431-451, November.
    18. Marek Loužek, 2007. "Pension Reform in the Czech Republic - A Contribution into the Debate," Prague Economic Papers, Prague University of Economics and Business, vol. 2007(1), pages 55-69.
    19. Ashok Thomas & Luca Spataro, 2013. "Pension funds and Market Efficiency: A review," Discussion Papers 2013/164, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    20. Jonathan Gruber & Aaron Yelowitz, 1999. "Public Health Insurance and Private Savings," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1249-1274, December.

    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D10 - Microeconomics - - Household Behavior - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:nzecpp:v:50:y:2016:i:1:p:29-50. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://www.tandfonline.com/RNZP20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.