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Do Retirement Savings Increase in Response to Information About Retirement and Expected Pensions?

Mathias Dolls (), Philipp Dörrenberg, Andreas Peichl () and Holger Stichnoth ()
Authors registered in the RePEc Author Service: Philipp Doerrenberg

No 6842, CESifo Working Paper Series from CESifo Group Munich

Abstract: How can retirement savings be increased? We explore a unique policy change in the context of the German pension system to study this question. As of 2005 (with a phase-in period between 2002-04), the German pension administration started to send out annual letters providing detailed and comprehensible information about the pension system and individual expected public pension payments. This reform did not change the level of pensions, but only provided information to individuals about their expected pension payments. Using German tax return data, we exploit an age discontinuity to identify the effect of these letters on the behavior of individuals. We find an increase in tax-deductible private retirement savings and provide evidence that this is not due to a crowding-out of other forms of savings. We also show that labor earnings, i.e. the most direct way to increase public pensions, increase after receiving the letter.

Keywords: pensions; savings; information letters; earnings (search for similar items in EconPapers)
JEL-codes: H55 H24 D14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-dem, nep-lma and nep-pbe
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

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Journal Article: Do retirement savings increase in response to information about retirement and expected pensions? (2018) Downloads
Chapter: Do Retirement Savings Increase in Response to Information about Retirement and Expected Pensions? (2016)
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