IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v53y2025i6p786-819.html
   My bibliography  Save this article

Does a Decrease in Pension Taxes Increase Retirement Savings? An Experimental Analysis

Author

Listed:
  • Kay Blaufus
  • Michael Milde
  • Alexandra Spaeth

Abstract

In a series of experiments, we investigate if lowering the income tax rate on pensions increases savings. Our results show that reducing the tax rate on pensions has minimal impact on saving behavior. However, when we manipulate the current tax rate for savings deduction, subjects adjust their savings accordingly. This suggests that individuals tend to overlook the impact of income taxes on pensions. Furthermore, our findings highlight that governments can raise after-tax pensions without altering tax revenues by shifting from deferred to immediate pension tax systems.

Suggested Citation

  • Kay Blaufus & Michael Milde & Alexandra Spaeth, 2025. "Does a Decrease in Pension Taxes Increase Retirement Savings? An Experimental Analysis," Public Finance Review, , vol. 53(6), pages 786-819, November.
    • Handle: RePEc:sae:pubfin:v:53:y:2025:i:6:p:786-819
    DOI: 10.1177/10911421251335100
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/10911421251335100
    Download Restriction: no
    File URL: https://libkey.io/10.1177/10911421251335100?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
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:sae:pubfin:v:53:y:2025:i:6:p:786-819. 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: SAGE Publications (email available below). General contact details of provider: .

    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.