Saving for Old Age

Countries around the world face a retirement crisis brought on by aging populations, declining birthrates, and fiscal shortfalls. As a result, policy makers increasingly seek to understand retirement savings patterns, a crucial component of the saf...

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Main Authors:	Demirguc-Kunt, Asli, Klapper, Leora, Panos, Georgios A.
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	UNEXPECTED EXPENSES HOME OWNERSHIP FINANCIAL SERVICES DEPOSIT FINANCIAL DECISIONS ACCOUNTING BEHAVIORAL ECONOMICS PUBLIC ECONOMICS RETIREMENT SOCIOECONOMIC STATUS ILLITERACY INCOME INTEREST VOLUNTARY SAVING FINANCIAL LITERACY CONTRIBUTION PENSION SYSTEMS WORTH SAVINGS BEHAVIOR INTEREST RATE AUTOMATIC ENROLLMENT SPENDING INCOME GROUP RESPONSIBILITY INFORMATION LABOR FORCE BEQUEST FINANCIAL ILLITERACY RECESSION MORTGAGE WELFARE LOWER-INCOME WORKERS LOAN OWNERSHIP PENSION SYSTEM CONTRIBUTION RATES SAVING RETIREMENT DECISION INSURANCE SCHEME PENSION LIFE EXPECTANCY RETIREMENT AGES SAFETY NETS LITERACY KNOWLEDGE LABOR MARKET RETIRED SAVINGS RETIREMENT EXPECTATIONS FINANCIAL INSTITUTION WAGE MONEY PROBABILITY SOPHISTICATED INVESTORS FINANCES PRECAUTIONARY SAVINGS RETIREMENT AGE INTEREST RATES UNEMPLOYED OLDER WORKERS FINANCIAL INSTITUTIONS DEBT RETIREMENT PLANNING HOUSEHOLD INCOME SAVINGS PATTERNS FINANCIAL PRODUCTS BUSINESS CYCLE SOCIAL SECURITY SOCIAL PROTECTION VALUABLE DEFINED CONTRIBUTION PENSIONS FINANCIAL SYSTEM SUBSIDIES INCOME DISPARITIES DEFINED BENEFIT PENSIONS FINANCE OTHER ASSETS SAVINGS ACCOUNT BANKS INVESTMENT DECISIONS SAVINGS RATES INVESTORS FEDERAL RESERVE UNDERSTANDING PENSIONS CONSUMER VOLUNTARY SAVINGS CONSUMER CHARACTERISTICS EXPENSES INSURANCE SCHEMES SAVINGS PROGRAMS LIMITED GOAL FINANCIAL CRISIS PENSIONS CONTRIBUTION RATE BANK CONTRIBUTIONS PERSONAL SAVING SAFETY NET FINANCIAL SECURITY DISABILITY INSURANCE PROPERTY TAX RATES RETIREMENT SAVING PRIVATE PENSIONS RETIREMENT PLAN RETIREMENT FUNDS RETIREMENT SECURITY BUSINESS SCHOOL INSURANCE CONTRIBUTION PENSIONS RETIREMENT SAVINGS RETIREMENT ASSETS SECURITY EDUCATION PENSION SCHEME INVOLUNTARY RETIREMENT INVESTMENT FINANCIAL MARKETS PENSION BENEFIT DISABILITY RETIREMENT PROGRAMS NO RETIREMENT SAVINGS PENSION SCHEMES RISK MANAGEMENT OLDER INDIVIDUALS PENSION COVERAGE PRIMARY EDUCATION PENSION SPENDING PENSION PROVISION SECONDARY EDUCATION SAVERS SOCIAL SECURITY CONTRIBUTION RESEARCH ASSISTANCE FINANCIAL INCENTIVES
Online Access:	http://documents.worldbank.org/curated/en/2016/06/26428607/saving-old-age http://hdl.handle.net/10986/24532

id	okr-10986-24532
recordtype	oai_dc
spelling	okr-10986-245322021-04-23T14:04:22Z Saving for Old Age Demirguc-Kunt, Asli Klapper, Leora Panos, Georgios A. UNEXPECTED EXPENSES HOME OWNERSHIP FINANCIAL SERVICES DEPOSIT FINANCIAL DECISIONS ACCOUNTING BEHAVIORAL ECONOMICS PUBLIC ECONOMICS RETIREMENT SOCIOECONOMIC STATUS ILLITERACY INCOME INTEREST VOLUNTARY SAVING FINANCIAL LITERACY CONTRIBUTION PENSION SYSTEMS WORTH SAVINGS BEHAVIOR INTEREST RATE AUTOMATIC ENROLLMENT SPENDING INCOME GROUP RESPONSIBILITY INFORMATION LABOR FORCE BEQUEST FINANCIAL ILLITERACY RECESSION MORTGAGE WELFARE LOWER-INCOME WORKERS LOAN OWNERSHIP PENSION SYSTEM CONTRIBUTION RATES SAVING RETIREMENT DECISION INSURANCE SCHEME PENSION LIFE EXPECTANCY RETIREMENT AGES SAFETY NETS LITERACY KNOWLEDGE LABOR MARKET RETIRED SAVINGS RETIREMENT EXPECTATIONS FINANCIAL INSTITUTION WAGE MONEY PROBABILITY SOPHISTICATED INVESTORS FINANCES PRECAUTIONARY SAVINGS RETIREMENT AGE INTEREST RATES UNEMPLOYED OLDER WORKERS FINANCIAL INSTITUTIONS DEBT RETIREMENT PLANNING HOUSEHOLD INCOME SAVINGS PATTERNS FINANCIAL PRODUCTS BUSINESS CYCLE SOCIAL SECURITY SOCIAL PROTECTION VALUABLE DEFINED CONTRIBUTION PENSIONS FINANCIAL SYSTEM SUBSIDIES INCOME DISPARITIES DEFINED BENEFIT PENSIONS FINANCE OTHER ASSETS SAVINGS ACCOUNT BANKS INVESTMENT DECISIONS SAVINGS RATES INVESTORS FEDERAL RESERVE UNDERSTANDING PENSIONS CONSUMER VOLUNTARY SAVINGS CONSUMER CHARACTERISTICS EXPENSES INSURANCE SCHEMES SAVINGS PROGRAMS LIMITED GOAL FINANCIAL CRISIS PENSIONS CONTRIBUTION RATE BANK CONTRIBUTIONS PERSONAL SAVING SAFETY NET FINANCIAL SECURITY DISABILITY INSURANCE PROPERTY TAX RATES RETIREMENT SAVING PRIVATE PENSIONS RETIREMENT PLAN RETIREMENT FUNDS RETIREMENT SECURITY BUSINESS SCHOOL INSURANCE CONTRIBUTION PENSIONS RETIREMENT SAVINGS RETIREMENT ASSETS SECURITY EDUCATION PENSION SCHEME INVOLUNTARY RETIREMENT INVESTMENT FINANCIAL MARKETS PENSION BENEFIT DISABILITY RETIREMENT PROGRAMS NO RETIREMENT SAVINGS PENSION SCHEMES RISK MANAGEMENT OLDER INDIVIDUALS PENSION COVERAGE PRIMARY EDUCATION PENSION SPENDING PENSION PROVISION SECONDARY EDUCATION SAVERS SOCIAL SECURITY CONTRIBUTION RESEARCH ASSISTANCE FINANCIAL INCENTIVES Countries around the world face a retirement crisis brought on by aging populations, declining birthrates, and fiscal shortfalls. As a result, policy makers increasingly seek to understand retirement savings patterns, a crucial component of the safety net for the elderly. Drawing on the 2014 Global Findex database, which provides individual-level data on the use of financial products in more than 140 countries, this paper examines how adults save for old age. It finds that about 25 percent of adults worldwide save for old age, with rates exceeding 35 percent in high-income Organisation for Economic Co-operation and Development economies and the East Asia and Pacific region. On average, men are slightly more likely than women to save for this purpose, but the gender gap is deeper in developing countries. Worldwide, saving for old age is more common among older adults, more educated adults, and adults who own accounts. Adults in countries with English legal origin, and with high savings rates, are also more likely to save for old age. The paper also finds that measures to increase trust in the financial system, such as the safety net/moral hazard index based on deposit insurance, lead to higher rates of saving for old age. Finally, the paper finds little evidence of substitution between pension system provisions and contribution rates with saving for old age. 2016-06-14T21:20:21Z 2016-06-14T21:20:21Z 2016-06 Working Paper http://documents.worldbank.org/curated/en/2016/06/26428607/saving-old-age http://hdl.handle.net/10986/24532 English en_US Policy Research Working Paper;No. 7693 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	UNEXPECTED EXPENSES HOME OWNERSHIP FINANCIAL SERVICES DEPOSIT FINANCIAL DECISIONS ACCOUNTING BEHAVIORAL ECONOMICS PUBLIC ECONOMICS RETIREMENT SOCIOECONOMIC STATUS ILLITERACY INCOME INTEREST VOLUNTARY SAVING FINANCIAL LITERACY CONTRIBUTION PENSION SYSTEMS WORTH SAVINGS BEHAVIOR INTEREST RATE AUTOMATIC ENROLLMENT SPENDING INCOME GROUP RESPONSIBILITY INFORMATION LABOR FORCE BEQUEST FINANCIAL ILLITERACY RECESSION MORTGAGE WELFARE LOWER-INCOME WORKERS LOAN OWNERSHIP PENSION SYSTEM CONTRIBUTION RATES SAVING RETIREMENT DECISION INSURANCE SCHEME PENSION LIFE EXPECTANCY RETIREMENT AGES SAFETY NETS LITERACY KNOWLEDGE LABOR MARKET RETIRED SAVINGS RETIREMENT EXPECTATIONS FINANCIAL INSTITUTION WAGE MONEY PROBABILITY SOPHISTICATED INVESTORS FINANCES PRECAUTIONARY SAVINGS RETIREMENT AGE INTEREST RATES UNEMPLOYED OLDER WORKERS FINANCIAL INSTITUTIONS DEBT RETIREMENT PLANNING HOUSEHOLD INCOME SAVINGS PATTERNS FINANCIAL PRODUCTS BUSINESS CYCLE SOCIAL SECURITY SOCIAL PROTECTION VALUABLE DEFINED CONTRIBUTION PENSIONS FINANCIAL SYSTEM SUBSIDIES INCOME DISPARITIES DEFINED BENEFIT PENSIONS FINANCE OTHER ASSETS SAVINGS ACCOUNT BANKS INVESTMENT DECISIONS SAVINGS RATES INVESTORS FEDERAL RESERVE UNDERSTANDING PENSIONS CONSUMER VOLUNTARY SAVINGS CONSUMER CHARACTERISTICS EXPENSES INSURANCE SCHEMES SAVINGS PROGRAMS LIMITED GOAL FINANCIAL CRISIS PENSIONS CONTRIBUTION RATE BANK CONTRIBUTIONS PERSONAL SAVING SAFETY NET FINANCIAL SECURITY DISABILITY INSURANCE PROPERTY TAX RATES RETIREMENT SAVING PRIVATE PENSIONS RETIREMENT PLAN RETIREMENT FUNDS RETIREMENT SECURITY BUSINESS SCHOOL INSURANCE CONTRIBUTION PENSIONS RETIREMENT SAVINGS RETIREMENT ASSETS SECURITY EDUCATION PENSION SCHEME INVOLUNTARY RETIREMENT INVESTMENT FINANCIAL MARKETS PENSION BENEFIT DISABILITY RETIREMENT PROGRAMS NO RETIREMENT SAVINGS PENSION SCHEMES RISK MANAGEMENT OLDER INDIVIDUALS PENSION COVERAGE PRIMARY EDUCATION PENSION SPENDING PENSION PROVISION SECONDARY EDUCATION SAVERS SOCIAL SECURITY CONTRIBUTION RESEARCH ASSISTANCE FINANCIAL INCENTIVES
spellingShingle	UNEXPECTED EXPENSES HOME OWNERSHIP FINANCIAL SERVICES DEPOSIT FINANCIAL DECISIONS ACCOUNTING BEHAVIORAL ECONOMICS PUBLIC ECONOMICS RETIREMENT SOCIOECONOMIC STATUS ILLITERACY INCOME INTEREST VOLUNTARY SAVING FINANCIAL LITERACY CONTRIBUTION PENSION SYSTEMS WORTH SAVINGS BEHAVIOR INTEREST RATE AUTOMATIC ENROLLMENT SPENDING INCOME GROUP RESPONSIBILITY INFORMATION LABOR FORCE BEQUEST FINANCIAL ILLITERACY RECESSION MORTGAGE WELFARE LOWER-INCOME WORKERS LOAN OWNERSHIP PENSION SYSTEM CONTRIBUTION RATES SAVING RETIREMENT DECISION INSURANCE SCHEME PENSION LIFE EXPECTANCY RETIREMENT AGES SAFETY NETS LITERACY KNOWLEDGE LABOR MARKET RETIRED SAVINGS RETIREMENT EXPECTATIONS FINANCIAL INSTITUTION WAGE MONEY PROBABILITY SOPHISTICATED INVESTORS FINANCES PRECAUTIONARY SAVINGS RETIREMENT AGE INTEREST RATES UNEMPLOYED OLDER WORKERS FINANCIAL INSTITUTIONS DEBT RETIREMENT PLANNING HOUSEHOLD INCOME SAVINGS PATTERNS FINANCIAL PRODUCTS BUSINESS CYCLE SOCIAL SECURITY SOCIAL PROTECTION VALUABLE DEFINED CONTRIBUTION PENSIONS FINANCIAL SYSTEM SUBSIDIES INCOME DISPARITIES DEFINED BENEFIT PENSIONS FINANCE OTHER ASSETS SAVINGS ACCOUNT BANKS INVESTMENT DECISIONS SAVINGS RATES INVESTORS FEDERAL RESERVE UNDERSTANDING PENSIONS CONSUMER VOLUNTARY SAVINGS CONSUMER CHARACTERISTICS EXPENSES INSURANCE SCHEMES SAVINGS PROGRAMS LIMITED GOAL FINANCIAL CRISIS PENSIONS CONTRIBUTION RATE BANK CONTRIBUTIONS PERSONAL SAVING SAFETY NET FINANCIAL SECURITY DISABILITY INSURANCE PROPERTY TAX RATES RETIREMENT SAVING PRIVATE PENSIONS RETIREMENT PLAN RETIREMENT FUNDS RETIREMENT SECURITY BUSINESS SCHOOL INSURANCE CONTRIBUTION PENSIONS RETIREMENT SAVINGS RETIREMENT ASSETS SECURITY EDUCATION PENSION SCHEME INVOLUNTARY RETIREMENT INVESTMENT FINANCIAL MARKETS PENSION BENEFIT DISABILITY RETIREMENT PROGRAMS NO RETIREMENT SAVINGS PENSION SCHEMES RISK MANAGEMENT OLDER INDIVIDUALS PENSION COVERAGE PRIMARY EDUCATION PENSION SPENDING PENSION PROVISION SECONDARY EDUCATION SAVERS SOCIAL SECURITY CONTRIBUTION RESEARCH ASSISTANCE FINANCIAL INCENTIVES Demirguc-Kunt, Asli Klapper, Leora Panos, Georgios A. Saving for Old Age
relation	Policy Research Working Paper;No. 7693
description	Countries around the world face a retirement crisis brought on by aging populations, declining birthrates, and fiscal shortfalls. As a result, policy makers increasingly seek to understand retirement savings patterns, a crucial component of the safety net for the elderly. Drawing on the 2014 Global Findex database, which provides individual-level data on the use of financial products in more than 140 countries, this paper examines how adults save for old age. It finds that about 25 percent of adults worldwide save for old age, with rates exceeding 35 percent in high-income Organisation for Economic Co-operation and Development economies and the East Asia and Pacific region. On average, men are slightly more likely than women to save for this purpose, but the gender gap is deeper in developing countries. Worldwide, saving for old age is more common among older adults, more educated adults, and adults who own accounts. Adults in countries with English legal origin, and with high savings rates, are also more likely to save for old age. The paper also finds that measures to increase trust in the financial system, such as the safety net/moral hazard index based on deposit insurance, lead to higher rates of saving for old age. Finally, the paper finds little evidence of substitution between pension system provisions and contribution rates with saving for old age.
format	Working Paper
author	Demirguc-Kunt, Asli Klapper, Leora Panos, Georgios A.
author_facet	Demirguc-Kunt, Asli Klapper, Leora Panos, Georgios A.
author_sort	Demirguc-Kunt, Asli
title	Saving for Old Age
title_short	Saving for Old Age
title_full	Saving for Old Age
title_fullStr	Saving for Old Age
title_full_unstemmed	Saving for Old Age
title_sort	saving for old age
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/06/26428607/saving-old-age http://hdl.handle.net/10986/24532
_version_	1764456968291876864

Saving for Old Age

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