IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-03229960.html
   My bibliography  Save this paper

Early retirement and household financial savings
[Pension anticipée et épargne financière des ménages]

Author

Listed:
  • Luc Arrondel

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Jean-Brieux Delbos

    (Banque de France - Banque de France - Banque de France)

  • Dominique Durant

    (Banque de France - Banque de France - Banque de France)

  • Christian Pfister

    (Banque de France - Banque de France - Banque de France, Institut d'Études Politiques [IEP] - Paris)

  • Laurent Soulat

    (CDC - Caisse des dépôts et consignations (France))

Abstract

Since Feldstein's pioneering article (1974), the impact of a pension system on the level of savings has been the subject of numerous studies, with sometimes controversial results. According to the standard life-cycle hypothesis, someone who anticipates a loss in living standards upon retirement should, all else being equal, save more. This is the issue examined here. To this end, we consider that individuals anticipate their replacement rate (based on their wage profile) more satisfactorily than the amount of their pension at the time of retirement. We then study the effects of an anticipated variation in this replacement rate on household financial savings, taking into account both expected career changes and pension reforms. We use the 2012 wave of the PAT€R survey of the French population, which provides a wealth of information at the individual level on pension expectations. Our econometric estimates show that a lower (respectively, higher) expected replacement rate is significantly related to a higher (respectively, lower) financial savings rate.

Suggested Citation

  • Luc Arrondel & Jean-Brieux Delbos & Dominique Durant & Christian Pfister & Laurent Soulat, 2020. "Early retirement and household financial savings [Pension anticipée et épargne financière des ménages]," Post-Print halshs-03229960, HAL.
    • Handle: RePEc:hal:journl:halshs-03229960
    DOI: 10.3917/reof.170.0227
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-03229960. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.