Pensions and Household Savings: Cross-Country Heterogeneity in Europe
56 Pages Posted: 9 Nov 2019
Date Written: November 2019
We address the question of whether the heterogeneity in savings is partly due to differences in pension wealth across individuals and across countries, using a European harmonised wealth survey (HFCS) combined with estimates of pension wealth (OECD). First, we find significant displacement effects of mandatory pension wealth on non-pension financial wealth at the mean, and a statistically significant crowd-out estimate on the probability of owning real estate property. Second, there is heterogeneity in the mean savings offset depending on age, risk attitudes and country. Third, the offset follows different patterns along the non-pension wealth distribution across countries.
Keywords: Wealth, Pensions, Life Cycle
JEL Classification: D31, D91, H55
Suggested Citation: Suggested Citation