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Financial Incentives and Retirement Savings

image of Financial Incentives and Retirement Savings

Are tax incentives the best way to encourage people to save for retirement? This publication assesses whether countries can improve the design of financial incentives to promote savings for retirement. After describing how different countries design financial incentives to promote savings for retirement in funded pensions, the study calculates the overall tax advantage that individuals may benefit from as a result of those incentives when saving for retirement. It then examines the fiscal cost of those incentives and their effectiveness in increasing retirement savings, and looks into alternative approaches to designing financial incentives. The study ends with policy guidelines on how to improve the design of financial incentives to promote savings for retirement, highlighting that depending on the policy objective certain designs of tax incentives or non-tax incentives may be more appropriate.

English

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Country profiles

This annex provides detailed information about how OECD and selected non-OECD countries design financial incentives to promote savings for retirement. Each country profile includes the following sections: i) the structure of the funded private pension system; ii) the tax treatment of retirement savings (contributions, returns on investment, funds accumulated and pension income); iii) the description of non-tax incentives; iv) the social treatment of contributions and benefits; v) the tax treatment of pensioners; and vi) the incentives for employers.

English

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