An international perspective on “safe” savings rates for retirement
This 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.
|Date of creation:||28 May 2012|
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- Pfau, Wade Donald, 2011. "Safe Savings Rates: A New Approach to Retirement Planning over the Lifecycle," MPRA Paper 28796, University Library of Munich, Germany.
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