IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/393-en.html
   My bibliography  Save this paper

Long-Term Budgetary Implications of Tax-Favoured Retirement Plans

Author

Listed:
  • Pablo Antolín

    (OECD)

  • Alain de Serres

    (OECD)

  • Christine de la Maisonneuve

    (OECD)

Abstract

This paper provides estimates of the implicit fiscal assets as well as of the evolution over time of fiscal costs and revenues related to tax-favoured retirement saving regimes in 17 OECD countries, taking into account current and future contributions, asset accumulation and withdrawals, all of which will be strongly influenced by future demographic developments. The main results show that in the case where tax incentives are assumed to lead essentially to saving diversion rather than creation, the net budgetary cost of tax-favoured schemes would remain large, despite the sharp rise in revenues collected from withdrawals as population ages. The paper shows that this cost would significantly be reduced if tax-favoured schemes succeed in promoting additional private savings. It then explores a number of policy options to maximize the amount of additional saving ... Lmplications budgétaires à long terme des plans d'épargne retraite à traitement fiscal favorable Cette étude présente, pour 17 pays de l’OCDE, les résultats d’estimation des avoirs nets budgétaires ainsi que de l’évolution sur le temps des coûts et revenus fiscaux liés aux plans privés d’épargne retraite à traitement fiscal favorable. Les estimations prennent en compte les contributions, l’accumulation d’actifs et les prestations présentes et futures qui seront influencées par les changements démographiques à venir. Les principaux résultats suggèrent que dans l’hypothèse où les incitatifs fiscaux ont peu d’effet sur la creation nette d’épargne et conduisent plutôt à une réallocation de l’épargne existante, le coût budgétaire net des plans d’épargne retraite à traitement fiscal favorable demeurera élevé et ce, en dépit de la forte croissance des recettes fiscales anticipée, liée à l’augmentation importante du nombre de retraités par rapport au nombre de contributeurs. L’étude montre en outre que le coût budgétaire est sensiblement réduit dans l’hypothèse où ces plans ...

Suggested Citation

  • Pablo Antolín & Alain de Serres & Christine de la Maisonneuve, 2004. "Long-Term Budgetary Implications of Tax-Favoured Retirement Plans," OECD Economics Department Working Papers 393, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:393-en
    DOI: 10.1787/138080145732
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/138080145732
    Download Restriction: no
    File URL: https://libkey.io/10.1787/138080145732?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
    ---><---

    Citations

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


    Cited by:

    1. Börsch-Supan, Axel, 2004. "Mind the Gap: The Effectiveness of Incentives to boost Retirement Saving in Europe," MEA discussion paper series 04052, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    2. repec:zbw:rwirep:0170 is not listed on IDEAS
    3. Corneo, Giacomo & Keese, Matthias & Schröder, Carsten, 2010. "The effect of saving subsidies on household saving: Evidence from Germany," Discussion Papers 2010/3, Free University Berlin, School of Business & Economics.
    4. Frédéric Gonand, 2006. "Réforme des retraites, marchés financiers et investissement socialement responsable : les affinités électives," Revue d'Économie Financière, Programme National Persée, vol. 85(4), pages 285-294.
    5. World Bank, 2016. "Republic of Moldova Public Finance Review," World Bank Publications - Reports 28330, The World Bank Group.
    6. Caminada, Koen & Goudswaard, Kees, 2005. "Budgetary costs of tax facilities for pension savings: an empirical analysis," MPRA Paper 20735, University Library of Munich, Germany.
    7. repec:cup:judgdm:v:10:y:2015:i:5:p:407-415 is not listed on IDEAS
    8. Job M. T. Krijnen & Marcel Zeelenberg & Seger M. Breugelmans, 2015. "Decision importance as a cue for deferral," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 10(5), pages 407-415, September.
    9. Douglas Sutherland & Peter Hoeller & Rossana Merola, 2012. "Fiscal Consolidation: Part 1. How Much is Needed and How to Reduce Debt to a Prudent Level?," OECD Economics Department Working Papers 932, OECD Publishing.
    10. Łukasz Rawdanowicz & Eckhard Wurzel & Ane Kathrine Christensen, 2013. "The Equity Implications of Fiscal Consolidation," OECD Economics Department Working Papers 1013, OECD Publishing.
    11. Giacomo Corneo & Matthias Keese & Carsten Schröder, 2010. "The Eff ect of Saving Subsidies on Household Saving – Evidence from Germanys," Ruhr Economic Papers 0170, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Mark Pearson & John P. Martin, 2005. "Should We Extend the Role of Private Social Expenditure?," OECD Social, Employment and Migration Working Papers 23, OECD Publishing.
    13. Sutherland, Douglas, 2012. "Fiscal Consolidation Needs and Implications for Growth," MPRA Paper 38745, University Library of Munich, Germany.
    14. Börsch-Supan, Axel, 2004. "Mind the gap : the effectiveness of incentives to boost retirement saving in Europe," Papers 07-27, Sonderforschungsbreich 504.
    15. Corneo, Giacomo & Keese, Matthias & Schröder, Carsten, 2008. "Can governments boost voluntary retirement savings via tax incentives and subsidies? A German case study for low-income households," Economics Working Papers 2008-18, Christian-Albrechts-University of Kiel, Department of Economics.
    16. Koen Caminada & Kees Goudswaard, 2008. "Revenue Effects of Tax Facilities for Pension Savings," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(2), pages 233-246, June.
    17. Börsch-Supan, Axel, 2004. "MIND THE GAP: The Effectiveness of Incentives to Boost Retirement Saving in Europe," Sonderforschungsbereich 504 Publications 07-27, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    18. Direr, A., 2010. "The taxation of life annuities under adverse selection," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 50-58, February.
    19. Robert P. Hagemann, 2012. "Fiscal Consolidation: Part 6. What Are the Best Policy Instruments for Fiscal Consolidation?," OECD Economics Department Working Papers 937, OECD Publishing.
    20. Douglas Sutherland & Peter Hoeller & Rossana Merola, 2012. "Fiscal Consolidation: How Much, How Fast and by What Means?," OECD Economic Policy Papers 1, OECD Publishing.
    21. Julie Smith, 2007. "Time Use Among new mothers, the Economic Value of Unpaid Care work and gender aspects of superannuation tax concessions," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 10(2), pages 99-114.
    22. Isabelle Joumard & Mauro Pisu & Debra Bloch, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 3. Income Redistribution via Taxes and Transfers Across OECD Countries," OECD Economics Department Working Papers 926, OECD Publishing.

    More about this item

    Keywords

    ageing; déficit public; fiscal revenues; fiscalité favorable; pensions privées; private pensions; public deficits; retirement savings; tax-deferred; tax-favoured; vieillissement; épargne pour la retraite;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:oec:ecoaaa:393-en. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: https://edirc.repec.org/data/edoecfr.html .

    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.