What is the impact of pensions on saving?
AbstractThe enormous growth in both Social Security and private pension plans has stimulated much interest in the impact of these retirement programs on individual saving behavior and the level of national saving. The first issue is the extent to which employees covered by pension plans reduce their own direct saving in response to expected retirement benefits; the response of individuals to guaranteed retirement income will determine, to a large extent, their well-being in retirement. For a nation concerned about saving and capital formation, the second issue is the impact of collectivized retirement saving plans on the national saving rate. This impact will depend not only on individual responses to promised pension benefits, but also on the extent to which firms undertake direct saving, and, if they do not, the extent to which shareholders recognize and compensate for unfunded pension liabilities. The effect of pensions on national saving also requires determining the degree to which increased saving induced by favorable tax provisions exceeds the loss of government revenues. ; This paper will lay out the questions that need to be answered in order to determine the impact of private pension plans on saving, highlight those aspects of pensions that may complicate the analysis, summarize the results of empirical research in this area, and finally make recommendations for improvements in the data.
Download InfoIf 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.
Bibliographic InfoPaper provided by Federal Reserve Bank of Boston in its series Working Papers with number 91-5.
Date of creation: 1991
Date of revision:
Publication status: Published in Pensions and the Economy: Sources, Uses, and Limitations of Data, University of Pennsylvania Press for the Pension Research Council (1992).
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeremy I. Bulow & Randall Morck & Lawrence H. Summers, 1987.
"How Does the Market Value Unfunded Pension Liabilities?,"
NBER Working Papers
1602, National Bureau of Economic Research, Inc.
- Jeremy I. Bulow & Randall Morck & Lawrence H. Summers, 1987. "How Does the Market Value Unfunded Pension Liabilities?," NBER Chapters, in: Issues in Pension Economics, pages 81-110 National Bureau of Economic Research, Inc.
- Philip Cagan, 1965. "The Effect of Pension Plans on Aggregate Saving: Evidence from a Sample Survey," NBER Books, National Bureau of Economic Research, Inc, number caga65-2, May.
- Pitelis, Christos N, 1985.
"The Effects of Life Assurance and Pension Funds on Other Savings: The Postwar UK Experience,"
Bulletin of Economic Research,
Wiley Blackwell, vol. 37(3), pages 213-29, September.
- Pitelis, Christos N., 1984. "The effects of Life Assurance and Pension Funds on Other Savings : The Postwar U.K. Experience," The Warwick Economics Research Paper Series (TWERPS) 252, University of Warwick, Department of Economics.
- Kotlikoff, Laurence J, 1979. "Testing the Theory of Social Security and Life Cycle Accumulation," American Economic Review, American Economic Association, vol. 69(3), pages 396-410, June.
- Modigliani, Franco, 1988. "The Role of Intergenerational Transfers and Life Cycle Saving in the Accumulation of Wealth," Journal of Economic Perspectives, American Economic Association, vol. 2(2), pages 15-40, Spring.
- Martin Feldstein & Stephanie Seligman, 1981.
"Pension Funding, Share Prices, and National Saving,"
NBER Working Papers
0509, National Bureau of Economic Research, Inc.
- Feldstein, Martin & Seligman, Stephanie, 1981. "Pension Funding, Share Prices, and National Savings," Journal of Finance, American Finance Association, vol. 36(4), pages 801-24, September.
- Hemming, Richard & Harvey, Russell, 1983. "Occupational Pension Scheme Membership and Retirement Saving," Economic Journal, Royal Economic Society, vol. 93(369), pages 128-44, March.
- Boskin, Michael J, 1978. "Taxation, Saving, and the Rate of Interest," Journal of Political Economy, University of Chicago Press, vol. 86(2), pages S3-27, April.
- Feldstein, Martin & Pellechio, Anthony, 1979. "Social Security and Household Wealth Accumulation: New Microeconometric Evidence," The Review of Economics and Statistics, MIT Press, vol. 61(3), pages 361-68, August.
- Alan S. Blinder, 1982. "Private Pensions and Public Pensions: Theory and Fact," NBER Working Papers 0902, National Bureau of Economic Research, Inc.
- Michael J. Boskin, 1978. "Taxation, Saving, and the Rate of Interest," NBER Chapters, in: Research in Taxation, pages 3-27 National Bureau of Economic Research, Inc.
- Munnell, Alicia H., 1991.
"Are Pensions Worth the Cost?,"
National Tax Journal,
National Tax Association, vol. 44(3), pages 393-403, September.
- BELAN, P. & MICHEL, Ph. & WIGNIOLLE, B., 2001.
"Pension funds and capital accumulation,"
CORE Discussion Papers
2001026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Alan L. Gustman & Olivia S. Mitchell & Thomas L. Steinmeier, 1993.
"The Role of Pensions in the Labor Market,"
NBER Working Papers
4295, National Bureau of Economic Research, Inc.
- Jeannine Bailliu & Helmut Reisen, 1998.
"Do funded pensions contribute to higher aggregate savings? A cross-country analysis,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 134(4), pages 692-711, December.
- Jeanine Bailliu & Helmut Reisen, 1997. "Do Funded Pensions Contribute to Higher Aggregate Savings?: A Cross-Country Analysis," OECD Development Centre Working Papers 130, OECD Publishing.
- Geoffrey M. B. Tootell, 1996. "Can studies of application denials and mortgage defaults uncover taste-based discrimination?," Working Papers 96-10, Federal Reserve Bank of Boston.
- Alan L. Gustman & F. Thomas Juster, 1995. "Income and Wealth of Older American Households: Modeling Issues for Public Policy Analysis," NBER Working Papers 4996, National Bureau of Economic Research, Inc.
- Leechor, Chad, 1996. "Reforming Indonesia's pension system," Policy Research Working Paper Series 1677, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio).
If references are entirely missing, you can add them using this form.