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Are Pension Savings sufficient? Perceptions and Expectations of American and Dutch Workers

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Author Info

  • Dalen, H.P. van
  • Henkens, K.
  • Hershey, D.A.

    (Tilburg University, Center for Economic Research)

Abstract

Are retirement savings sufficient to finance a good pension income? This highly uncertain and subjective dimension of life cycle decision making is assessed among married working individuals using an identical survey distributed to Dutch and American workers in 2007. Despite marked differences in expected and needed pension replacement rates - where the Dutch replacement rates are systematically higher than the American rates - the perceived savings adequacy is more or less the same across Dutch and American workers. Moreover, individuals’ perceived savings adequacy was found to be influenced by the three groups of factors: institutional forces, social forces and psychological dispositions. This study shows that differences in the mind set of American workers plays a far larger role in explaining differences in perceptions of savings adequacy than it does in the Netherlands.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2008-58.

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Date of creation: 2008
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Handle: RePEc:dgr:kubcen:200858

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Web page: http://center.uvt.nl

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Keywords: retirement; savings; planning; pension funds;

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References

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  1. James Banks & Zoe Oldfield, 2007. "Understanding Pensions: Cognitive Function, Numerical Ability and Retirement Saving," Fiscal Studies, Institute for Fiscal Studies, vol. 28(2), pages 143-170, 06.
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Cited by:
  1. Voňková, Hana & van Soest, Arthur, 2009. "How Sensitive Are Retirement Decisions to Financial Incentives: A Stated Preference Analysis," IZA Discussion Papers 4505, Institute for the Study of Labor (IZA).

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