IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp18164.html
   My bibliography  Save this paper

Trading Pay for Pensions: Evidence from a Discrete Choice Experiment in the United Kingdom

Author

Listed:
  • Deschacht, Nick

    (KU Leuven)

  • Guillemyn, Inés

    (University of Antwerp)

  • Vujic, Suncica

    (University of Antwerp)

Abstract

This study estimates individuals’ willingness to pay for pension benefits using a discrete choice experiment with fictitious job advertisements conducted among workers in the United Kingdom (UK). The results indicate that workers are willing to trade off current pay for additional pension benefits, with the marginal worker willing to forgo 0.3% of their current wage for a one percentage point increase in pension benefits. Willingness to pay varies significantly across individuals, increasing with proximity to retirement age, higher income levels, financial planning and financial literacy.

Suggested Citation

  • Deschacht, Nick & Guillemyn, Inés & Vujic, Suncica, 2025. "Trading Pay for Pensions: Evidence from a Discrete Choice Experiment in the United Kingdom," IZA Discussion Papers 18164, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18164
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp18164.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

    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:iza:izadps:dp18164. 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.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.