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Retirement Savings Incentives for Low‐ and Middle‐Income Individuals: Does Government Funded Matching Change Behaviour?

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  • Kristen Sobeck
  • Robert Breunig

Abstract

We evaluate a government‐funded matching policy for retirement savings contributions targeted at low‐ and middle‐income individuals. Using a difference‐in‐difference approach, we exploit administrative changes to the Australian Government's retirement contribution matching (co‐contribution) policy to identify the impact of the programme on savings behaviour. A reduction in the income eligibility threshold led to a 0.9 percentage point decline in the share of individuals who made a contribution and a 6.3 per cent decrease in the value of retirement contributions. Conditional on making a non‐concessional (post‐tax) contribution prior to the change in eligibility rules, the average value of individual contributions declined by between 16 and 22 per cent.

Suggested Citation

  • Kristen Sobeck & Robert Breunig, 2026. "Retirement Savings Incentives for Low‐ and Middle‐Income Individuals: Does Government Funded Matching Change Behaviour?," The Economic Record, The Economic Society of Australia, vol. 102(337), pages 208-226, June.
    • Handle: RePEc:bla:ecorec:v:102:y:2026:i:337:p:208-226
    DOI: 10.1111/1475-4932.70032
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