Examining the Impacts of Saving Rate and Net Lending on Pension Funds in OECD Countries

Phung Huong Thu Thi (), Le Thai Hong () and Anh Pham Thi Hoang ()
Additional contact information
Phung Huong Thu Thi: VNU University of Economics and Business, Hanoi, Vietnam
Le Thai Hong: VNU University of Economics and Business, Hanoi, Vietnam
Anh Pham Thi Hoang: Banking Academy of Vietnam, Hanoi, Vietnam

International Review of Financial Consumers, 2024, vol. 9, issue 1, 15-26

Abstract: While various studies have shown the influence of pension plans on saving rates in different countries, the relationship between lending and pension wealth has been under-explored. This paper thus aims to analyse the impacts of saving rate and net lending on pension funds in OECD countries. For this purpose, we employ a panel data analysis from 27 OECD countries over an 11-year period from 2011 to 2021. Results from fixed effects regression models show a negative association between savings rate and pension contributions as well as pension benefits paid. In addition, net lending does not seem to have any significant influence on pension fund revenues, however, there is a slight positive impact on pension benefits paid. Finally, we show that our results are robust even after controlling for various socio-economic and demographic factors. The findings of our study have significant implications for policy design, particularly in relation to the incentives provided by policymakers to improve pension sustainability. Policymakers may offer interest rate reductions or direct substitutes for savings and lending to encourage individuals to contribute to the pension funds.

Keywords: Pension Funds; Lending; Savings; OECD Countries; Fixed Effects (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/irfc-2024-0002 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:irfinc:v:9:y:2024:i:1:p:15-26:n:1002

DOI: 10.2478/irfc-2024-0002

Access Statistics for this article

International Review of Financial Consumers is currently edited by Sharon Tennyson

More articles in International Review of Financial Consumers from Sciendo
Bibliographic data for series maintained by Peter Golla ().