on pensions results in higher savings. Our findings show that reducing the income tax rate on pensions has almost no … significant effect on savings behavior. However, if we vary the current tax rate at which savings are deducted, subjects adjust … their savings. Our results are in line with the interpretation that subjects neglect the level of income taxes on pensions …

How can retirement savings be increased? We explore a unique policy change in the context of the German pension system … these letters on the behavior of individuals. We find an increase in tax-deductible private retirement savings and provide … evidence that this is not due to a crowding-out of other forms of savings. We also show that labor earnings, i.e. the most …