Saving Puzzles and Saving Policies in the United States

TitleSaving Puzzles and Saving Policies in the United States
Publication TypeJournal Article
Year of Publication2001
AuthorsLusardi, A, Skinner, JS, Venti, SF
JournalOxford Review of Economic Policy
Volume17
Issue1
Pagination95-115
Call Numberpubs_2001_Lusardi_AOxfRevEconPol.pdf
KeywordsConsumption and Savings, Net Worth and Assets, Public Policy, Retirement Planning and Satisfaction
Abstract

Much of the decline in the NIPA saving rate can be attributed to capital gains in the stock market. While the NIPA saving rate is useful in measuring the supply of new funds for investment and capital accumulation, it is not useful in determining whether households are preparing financially for retirement. Because of capital gains, the population as a whole appears to be better prepared for retirement than it was a decade ago. However, there is still a large percentage of the population that saves too little. The inability to recognize the need to save and plan for retirement leads to low levels of participation in retirement plans, stock ownership, and wealth. The financial decisions and saving behaviour of these individuals are unaffected by the stock-market boom or the slide in personal saving. It is suggested that government policy is more effective at encouraging retirement security for these households than increasing the aggregate personal saving rate.

Notes

RDA 1998-002

Endnote Keywords

Saving/Stock Market/Public Policy/Economic Status/Retirement Planning

Endnote ID

8514

Citation Key6765