December 20, 2011

Did you really save so little for your retirement? An analysis of retirement savings and unconventional retirement accounts

We use a confirmatory factor analysis to study the relation between the importance of a broad spectrum of saving motives, such as saving for retirement, and saving behavior.
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Survey data show that many respondents save for retirement in unconventional retirement accounts, such as
investments in real estate. We show that finding the retirement motive important does not directly translate in additional retirement savings. We show that the annuity stream generated by conventional and unconventional accounts from age 65 onwards is small and that most savings are residual and are not being put aside for a specific motive. Also self-employed retirement savings are low, even though this group has generally no occupational pension.



Mauro Mastrogiacomo Read more
Rob Alessie Read more