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Extending pension coverage: Tax versus non-tax incentives

Author

Listed:
  • Joanna Rutecka-Gora

    (Warsaw School of Economics)

  • Jaroslav Vostatek

    (University of Finance and Administration)

  • John A. Turner

    (Pension Policy Center)

Abstract

This paper compares the design, cost and effectiveness of three voluntary approaches for increasing pension coverage. The first facilitates plan features designed to attract workers. The second provides tax and other financial incentives. The third mandates autoenrollment of workers with opt out. The non-tax incentives of plan features in the United States have had little effect on increasing coverage. Generous tax incentives in Germany and Czechia have raised coverage but are costly. Mandatory autoenrollment with opt out in the United Kingdom has achieved the highest coverage rate of the three approaches.

Suggested Citation

  • Joanna Rutecka-Gora & Jaroslav Vostatek & John A. Turner, 2018. "Extending pension coverage: Tax versus non-tax incentives," ACTA VSFS, University of Finance and Administration, vol. 12(2), pages 107-124.
    • Handle: RePEc:prf:journl:v:12:y:2018:i:2:p:107-124
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    File URL: https://www.vsfs.cz/periodika/acta-2018-2-01.pdf
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    References listed on IDEAS

    as
    1. Edward Whitehouse, 2005. "Taxation : The Tax Treatment of Funded Pensions," World Bank Publications - Reports 11211, The World Bank Group.
    2. Raj Chetty & John N. Friedman & Søren Leth-Petersen & Torben Heien Nielsen & Tore Olsen, 2014. "Active vs. Passive Decisions and Crowd-Out in Retirement Savings Accounts: Evidence from Denmark," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(3), pages 1141-1219.
    3. Pablo Antolín, 2008. "Coverage of Funded Pension Plans," OECD Working Papers on Insurance and Private Pensions 19, OECD Publishing.
    4. Amy Finkelstein & Nathaniel Hendren & Mark Shepard, 2017. "Subsidizing Health Insurance for Low-Income Adults: Evidence from Massachusetts," NBER Working Papers 23668, National Bureau of Economic Research, Inc.
    5. Börsch-Supan, Axel & Bucher-Koenen, Tabea & Goll, Nicolas & Maier, Christina, 2016. "15 Jahre Riester - eine Bilanz," Working Papers 12/2016, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    6. Sreyoshi Das & Camelia M Kuhnen & Stefan Nagel, 2020. "Socioeconomic Status and Macroeconomic Expectations," The Review of Financial Studies, Society for Financial Studies, vol. 33(1), pages 395-432.
    7. Pfarr, Christian & Schneider, Udo, 2013. "Choosing between subsidized or unsubsidized private pension schemes: evidence from German panel data," Journal of Pension Economics and Finance, Cambridge University Press, vol. 12(1), pages 62-91, January.
    8. Börsch-Supan, Axel & Bucher-Koenen, Tabea & Goll, Nicolas & Maier, Christina, 2016. "15 Jahre Riester - eine Bilanz," MEA discussion paper series 201606, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    9. Jaroslav Vostatek, 2017. "Czech Public and Occupational Pension Schemes and Reforms," ACTA VSFS, University of Finance and Administration, vol. 11(1), pages 61-92.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Jan Mertl & Radim Valenčík, 2019. "The Extension Of Pay-As-You-Go Pension Insurance System – Income And Expenditure Aspect," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 13(1), pages 77-86.

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    More about this item

    Keywords

    pension coverage; automatic enrollment; tax incentives;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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