American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Personal Retirement Accounts and Saving
American Economic Journal: Economic Policy
vol. 3,
no. 4, November 2011
(pp. 1–24)
Abstract
Aging populations are leading countries worldwide to social security reforms. Many countries are moving from pay-as-you-go to personal retirement account (PRA) systems because of their financial sustainability and positive impact on private savings. PRA systems boost private savings at a macro level by converting a government liability into financial wealth managed by private fund managers. However, at a micro level, changes in retirement wealth affect individuals' saving and consumption patterns through their working lives. Retirement wealth increased for lower-income workers after Mexico introduced PRAs, crowding out saving, increasing consumption, and offsetting some of the PRA effect on private savings. (JEL D14, E21, H55, J26, O16)Citation
Aguila, Emma. 2011. "Personal Retirement Accounts and Saving." American Economic Journal: Economic Policy, 3 (4): 1–24. DOI: 10.1257/pol.3.4.1Additional Materials
JEL Classification
- D14 Personal Finance
- E21 Macroeconomics: Consumption; Saving; Wealth
- H55 Social Security and Public Pensions
- J26 Retirement; Retirement Policies
- O16 Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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