Optimal savings for retirement von Julia Le Blanc | the role of individual accounts and disaster expectations | ISBN 9783865587749

Optimal savings for retirement

the role of individual accounts and disaster expectations

von Julia Le Blanc und Almuth Scholl
Mitwirkende
Autor / AutorinJulia Le Blanc
Autor / AutorinAlmuth Scholl
Buchcover Optimal savings for retirement | Julia Le Blanc | EAN 9783865587749 | ISBN 3-86558-774-7 | ISBN 978-3-86558-774-9

Optimal savings for retirement

the role of individual accounts and disaster expectations

von Julia Le Blanc und Almuth Scholl
Mitwirkende
Autor / AutorinJulia Le Blanc
Autor / AutorinAlmuth Scholl
We employ a life-cycle model with income risk to analyze how tax-deferred individual accounts affect households' savings for retirement. We consider voluntary accounts as opposed to mandatory accounts with minimum contribution rates. We contrast add-on accounts with carve-out accounts that partly replace social security contributions. Quantitative results suggest that making add-on accounts mandatory has adverse welfare effects across income groups. Carve-out accounts generate positive welfare across all income groups but gains are lower for low income earners. Default investment rules in individual accounts have a modest impact on welfare.