Do Private Pensions Increase National Saving?

17 Pages Posted: 12 Apr 2004 Last revised: 7 Jul 2010

See all articles by Martin S. Feldstein

Martin S. Feldstein

National Bureau of Economic Research (NBER) (deceased); Harvard University (deceased)

Date Written: 1980

Abstract

This paper discusses how private pension programs differ from public social security in their likely impact on aggregate saving. Although private pensions are likely to reduce direct saving by employees, this should be offset by the combination of companies' partial funding and the shareholders response to unfunded liabilities. In contrast to several earlier empirical studies that implied that social security does depress national saving, the current time series evidence suggests that the growth of private pensions has not had an adverse effect on saving and may have increased saving by a small amount.

Suggested Citation

Feldstein, Martin S., Do Private Pensions Increase National Saving? (1980). NBER Working Paper No. w0186, Available at SSRN: https://ssrn.com/abstract=260376

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