Use Arial Narrow in grey South African Savings Institute使用Arial字体缩小灰色南非储蓄所.pptVIP

An Alternative: State Sponsored Co-contribution Papke (1995) cited by Neuberger and McCarthy (2004) Finding Author Existence positively correlated with participation, level has little effect Poterba, Venti Wise (1992) Corroborate above finding Papke, Petersen Poterba (1993) Participation contributions insensitive to match rate over time Kusko, Poterba Wilcox (1993) Existence of match, not quantum that matters Scott (1994) Concur with above finding Papke (1995), Even Macpherson (1996), Basset et el (1998), Kusko et el (1998) Increases in match rate raise saving Clark and Schieber (1998), VanDerhei and Copeland (2001), Choi, Laibson et el (2002) An Example: Direct Subsidy for Low Income Voluntary coverage rate by deciles of income EU Social Protection Committee: 2008 German Riester Pensions pay a basic subsidy of €154 per adult, and an additional child subsidy of €185. Another Example: New Zealand In 2005 NZ announced auto-enrolled KiwiSaver, with eight weeks for opt out. Tax incentives were added on 1 July 2007 after 20 yrs of neutrality: New member sign-on incentive of $1000 tax free; Matching contribution of up to $20 per week ($1043 per year); Subsidy for the purchase of first home of up to $5000; Fee subsidy of $40 per year; Wage subsidy for employers (offset to compulsory employer contributions) of up to $20 per week; Employer contributions set to rise from 1% of gross pay to 4% by 2011; Investment income receives favourable tax treatment. 2008 Nationwide survey showed auto-enrollees had made a relatively small contribution by Dec 2007 (33%, 32% opt-out) Incentives made the difference – ‘new saving’ range between 9-19 cents per dollar (Gibson and Le: 2008) Conclusions On tax incentives: Adage: “an old (and well-understood) tax is a good tax” probably implies to existing retirement incentives too; 30 yr review of literature for Mirrlees Review: incentives do matter, but results differ based on education and demographics (Meghir and Phillips: 2008) People use