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Does pension information impact savings?

Published online by Cambridge University Press:  03 March 2022

Najat El Mekkaoui  and
Bérangère Legendre
Najat El Mekkaoui
Affiliation:
Paris Dauphine University, Paris, France
Bérangère Legendre*
Affiliation:
Université Savoie Mont Blanc Institut de Recherche en Gestion et Economie, Annecy-le-Vieux, France
*
*Corresponding author. Email: berangere.legendre@univ-smb.fr
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Abstract

Many pension reforms in OECD countries included pension statements with the objective of improving individuals' financial security in retirement. Our objective is to assess the effectiveness of the pension information policy implemented in France and to investigate whether the pension statement results in better informed workers, who then increase their retirement savings. Using regression discontinuity designs combined with quantile regressions, we assess whether the changes in retirement savings and holding of assets are due to the pension information system and then quantify the impact. We conclude that a pension estimate sent to workers encourages the wealthiest to increase their retirement savings while it does not influence the savings of individuals with a low level of wealth.

Keywords

Financial literacypension statementsquantile regressionssavings for retirement

JEL classification

J18: Public Policy C31: Cross-Sectional Models • Spatial Models • Treatment Effect Models • Quantile Regressions • Social Interaction Models D14: Household Saving • Personal Finance D83: Search • Learning • Information and Knowledge • Communication • Belief • Unawareness
Type
Article
Information
Journal of Pension Economics & Finance , Volume 22 , Issue 3 , July 2023 , pp. 352 - 370
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press

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