Private Pensions, Retirement Wealth and Lifetime Earnings

Jie Zhou and James (Jim) MacGee
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Jie Zhou: Bank of Canada

No 181, 2014 Meeting Papers from Society for Economic Dynamics

Abstract: This paper investigates the effect of private pensions on the retirement wealth distribution. We incorporate stochastic private pension coverage into a calibrated life-cycle model with stochastic earnings. Private pensions lead to higher net worth inequality at retirement, which is closer to the inequality observed in the PSID than a model without private pensions. However, the offset effect of private pension wealth on net worth is much larger in the model than in the data. We find that taxation and inflation can largely account for the difference.

Date: 2014
New Economics Papers: this item is included in nep-age and nep-dge
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Related works:
Working Paper: Private Pensions, Retirement Wealth and Lifetime Earnings (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed014:181

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