Are Pension Savings Sufficient? Perceptions and Expectations of American and Dutch Workers

CentER Discussion Paper No. 2008-58

35 Pages Posted: 25 Jun 2008

See all articles by Hendrik P. van Dalen

Hendrik P. van Dalen

Tilburg University, CentER; Netherlands Interdisciplinary Demographic Institute (NIDI)

Kene Henkens

Netherlands Interdisciplinary Demographic Institute

Douglas A. Hershey

Oklahoma State University - Stillwater

Date Written: June 25, 2008

Abstract

Are retirement savings sufficient to finance a good pension income? This highly uncertain and subjective dimension of life cycle decision making is assessed among married working individuals using an identical survey distributed to Dutch and American workers in 2007. Despite marked differences in expected and needed pension replacement rates - where the Dutch replacement rates are systematically higher than the American rates - the perceived savings adequacy is more or less the same across Dutch and American workers. Moreover, individuals' perceived savings adequacy was found to be influenced by the three groups of factors: institutional forces, social forces and psychological dispositions. This study shows that differences in the mind set of American workers plays a far larger role in explaining differences in perceptions of savings adequacy than it does in the Netherlands.

Keywords: retirement, savings, planning, pension funds

JEL Classification: D14, D91, G23, J26

Suggested Citation

van Dalen, Hendrik P. and Henkens, Kene and Hershey, Douglas A., Are Pension Savings Sufficient? Perceptions and Expectations of American and Dutch Workers (June 25, 2008). CentER Discussion Paper No. 2008-58, Available at SSRN: https://ssrn.com/abstract=1151273 or http://dx.doi.org/10.2139/ssrn.1151273

Hendrik P. Van Dalen (Contact Author)

Tilburg University, CentER ( email )

Tilburg University
P.O. Box 90153
Tilburg, NL-5000 LE
Netherlands
+13 4668982 (Phone)

HOME PAGE: http://www.tilburguniversity.nl/webwijs/show/?uid=h.p.vandalen

Netherlands Interdisciplinary Demographic Institute (NIDI) ( email )

P.O. Box 11650
NL-2502 AR The Hague
Netherlands
+70 356 5237 (Phone)
+70 364 7187 (Fax)

HOME PAGE: http://www.nidi.knaw.nl/en/staff/vandalen/

Kene Henkens

Netherlands Interdisciplinary Demographic Institute ( email )

P.O. Box 11650
The Hague NL-2502 AR
Netherlands
+3170 3565235 (Phone)
+3170 3647187 (Fax)

Douglas A. Hershey

Oklahoma State University - Stillwater ( email )

Stillwater, OK 74078-0555

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