An international perspective on “safe” savings rates for retirement
AbstractThis article simulates the savings rates required to meet retirement income goals in the worst-case scenario from overlapping historical periods for savers in 19 developed market countries. In the baseline, workers save for 30 years to replace 50 percent of their pre-retirement net income with subsequent inflation adjustments over a 30-year retirement. Public pension benefits would be added to this. The worst-case scenario saving rates ranged across the countries from 16.3 percent to 74.3 percent. Americans enjoyed the best worst-case savings scenario, and a broader international perspective suggests more caution may be needed when formulating retirement planning guidance.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39066.
Date of creation: 28 May 2012
Date of revision:
safe saving rate; retirement planning; historical simulation; developed countries;
Find related papers by JEL classification:
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
- D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-06-05 (Economics of Ageing)
- NEP-ALL-2012-06-05 (All new papers)
- NEP-LAB-2012-06-05 (Labour Economics)
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.:
- Pfau, Wade Donald, 2011. "Safe Savings Rates: A New Approach to Retirement Planning over the Lifecycle," MPRA Paper 28796, University Library of Munich, Germany.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- An international perspective on safe savings rates for retirement
by Wade Pfau in Pensions, Retirement Planning, and Economics Blog on 2012-06-01 04:52:00
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