An international perspective on “safe” savings rates for retirement

Wade Pfau and Bayu Kariastanto

MPRA Paper from University Library of Munich, Germany

Abstract: This article simulates the savings rates required to meet retirement income goals in the worst-case scenario from overlapping historical periods for savers in 19 developed market countries. In the baseline, workers save for 30 years to replace 50 percent of their pre-retirement net income with subsequent inflation adjustments over a 30-year retirement. Public pension benefits would be added to this. The worst-case scenario saving rates ranged across the countries from 16.3 percent to 74.3 percent. Americans enjoyed the best worst-case savings scenario, and a broader international perspective suggests more caution may be needed when formulating retirement planning guidance.

Keywords: safe saving rate; retirement planning; historical simulation; developed countries (search for similar items in EconPapers)
JEL-codes: C15 D14 G11 (search for similar items in EconPapers)
Date: 2012-05-28
New Economics Papers: this item is included in nep-age and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:39066

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