This paper focuses on precautionary saving against uncertain longevity and on the annuity insurance aspects of social …-cycle model is used to show that even an actuarially fair, fully funded social security system can reducenational saving. Second … impact of social security on saving and the long-run welfare loss from the introduction of social security …

effects of social security benefits on saving and retirement in an extended life cycle model. The parameter estimates indicate … that, with retirement behavior given, social security significantly reduces private saving: an increase of the benefit …-to-earnings ratio by 10 percentage points reduces the saving rate by approximately 3 percentage points …

Economics, provides a non-technical summary of the recent studies of the effects of social security on private saving. The first … studies. Although the traditional life cycle theory of saving clearly implies that the anticipation of social security … benefits reduces private saving, a richer theoretical framework suggests several reasons why the saving response cannot be …

, given the considerations mentioned above, "precautionary saving" exceeds life-cycle saving (that would have taken place in …-cycle model provides an inadequate explanation of observed saving behavior. Second, the introduction of an actuarially fair social …