Individual Private Retirement Insurances: holding behaviours among pensioners

Najat El Mekkaoui de Freitas (1) , Bérangère Legendre (2) , Gordon Clark (3)

1 LEDa - Laboratoire d'Economie de Dauphine
2 IREGE - Institut de Recherche en Gestion et en Economie
3 University of Oxford

In the current context of demographic pressures, reforms of PAYG pension systems increase the extent to which individuals are responsible for their own retirement planning. The French pension system offered high replacement rates. The population used to consider that the State scheme had to provide them with an adequat level of pension. In 2003, the pension reform implemented individual and professional pension plans. These retirement savings contracts are not well developed. However, we observed that individuals prefer contracting life endowment contracts, which are long term savings supports, to prepare retirement. Using econometric specifications, we intend to put into perspective the households and individual characteristics which explain the holding behaviours of life endowment contracts and retirement savings plans. We conclude that the highest professional categories and the most educated individuals hold more frequently and simultanesously both types of contracts.

Domaines: Economies et finances

Najat El Mekkaoui de Freitas, Bérangère Legendre, Gordon Clark. Individual Private Retirement Insurances: holding behaviours among pensioners. Economics Bulletin, 2013, 33 (1), pp.812-827. ⟨hal-00951881⟩