Filling the Pension Gap : Coverage and Value of Voluntary Retirement Savings
The current generation of workers can expect lower pension benefits in retirement than the current generation of pensioners. Private, voluntary pension savings will therefore play a greater role in providing for old age. This paper calculates the size of the quot;pension gapquot;: the difference between the benefits from mandatory retirement-income provision and a target pension level. It then computes the amount that people would need to save to achieve the target.Data on coverage of private, voluntary pension schemes in a range of OECD countries are then presented. The paper also shows how coverage varies with age and earnings. The results show significant gaps in coverage, particularly among low earners and younger workers. The effect could be a resurgence of old-age poverty when these generations reach retirement. Data on contributions to private pensions show that these are, on average, at a level likely to fill the pension gap. Expanding coverage rather than raising contribution rates should therefore be the policy priority.Five policy options for increasing coverage are assessed: (i) mandating private pensions; (ii) quot;soft compulsionquot;, which is automatic enrollment in private pensions but with an opt-out; (iii) facilitating access to the means for saving for retirement; (iv) preferential tax treatment of retirement savings; and (v) improving financial awareness
Year of publication: |
[2009]
|
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Authors: | Antolin, Pablo |
Other Persons: | Whitehouse, Edward (contributor) |
Publisher: |
[2009]: [S.l.] : SSRN |
Saved in:
freely available
Extent: | 1 Online-Ressource (32 p) |
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Type of publication: | Book / Working Paper |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 4, 2009 erstellt |
Other identifiers: | 10.2139/ssrn.1368827 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012718351
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