{"title":"Retirement Saving Over the Life Cycle: Evidence from a Developing Country.","authors":"Athiphat Muthitacharoen, Trongwut Burong","doi":"10.1080/08959420.2023.2226311","DOIUrl":null,"url":null,"abstract":"<p><p>Despite its importance, little is known about how individuals save for retirement through tax-advantaged vehicles over their working lives. Using Thailand's population of tax returns, this study examines the age profile of retirement saving and explores its implications for retirement savings adequacy. We find that the life-cycle pattern in retirement saving is hump-shaped across age. It rises from 3.0% when one begins working to 4.6% at age 46-48, then declines as one approaches retirement. The retirement saving rates peak later for higher-income workers. For all income groups, we also document the large role of the low-risk saving vehicle throughout the working life. Based on the predicted life-cycle saving profile, we estimate the income replacement rate from tax-advantaged saving vehicles to be around 24%, which is in line with evidence from advanced economies.</p>","PeriodicalId":47121,"journal":{"name":"Journal of Aging & Social Policy","volume":" ","pages":"1153-1170"},"PeriodicalIF":2.0000,"publicationDate":"2024-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Aging & Social Policy","FirstCategoryId":"90","ListUrlMain":"https://doi.org/10.1080/08959420.2023.2226311","RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"2023/6/22 0:00:00","PubModel":"Epub","JCR":"Q2","JCRName":"GERONTOLOGY","Score":null,"Total":0}
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Abstract
Despite its importance, little is known about how individuals save for retirement through tax-advantaged vehicles over their working lives. Using Thailand's population of tax returns, this study examines the age profile of retirement saving and explores its implications for retirement savings adequacy. We find that the life-cycle pattern in retirement saving is hump-shaped across age. It rises from 3.0% when one begins working to 4.6% at age 46-48, then declines as one approaches retirement. The retirement saving rates peak later for higher-income workers. For all income groups, we also document the large role of the low-risk saving vehicle throughout the working life. Based on the predicted life-cycle saving profile, we estimate the income replacement rate from tax-advantaged saving vehicles to be around 24%, which is in line with evidence from advanced economies.
期刊介绍：
The Journal of Aging & Social Policy offers a platform for insightful contributions from an international and interdisciplinary group of policy analysts and scholars. It provides an in-depth examination and analysis of critical phenomena that impact aging and the development and implementation of programs for the elderly from a global perspective, with a broad scope that encompasses not only the United States but also regions including Europe, the Middle East, Australia, Latin America, Asia, and the Asia-Pacific rim.
The journal regularly addresses a wide array of issues such as long-term services and supports, home- and community-based care, nursing-home care, assisted living, long-term care financing, financial security, employment and training, public and private pension coverage, housing, transportation, health care access, financing, and quality, family dynamics, and retirement. These topics are of significant importance to the field of aging and social policy, reflecting the journal's commitment to presenting a comprehensive view of the challenges and solutions related to aging populations around the world.
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