Do Workplace Pensions Crowd Out Other Retirement Savings? Evidence from Canadian Tax Records

Articles and reports: 11F0019M2015371

Description:

This paper investigates whether registered pension plans (RPPs) help households prepare financially for retirement or simply substitute for other forms of private saving. This issue is addressed using a panel of 1.8 million Canadian households, from 1991 to 2010, which appear in the Longitudinal Administrative Databank. The analysis controls for correlations in savings across accounts due to unobserved tastes for saving by exploiting the fact that employer contribution rates increase discontinuously on earnings above the average industrial wage, a unique feature of occupational pensions in Canada, the effect being estimated in a Regression Kink Design.

Issue Number: 2015371
Author(s): Messacar, Derek
FormatRelease dateMore information
HTMLDecember 21, 2015
PDFDecember 21, 2015