TY - UNPB
T1 - Mandatory Pension Saving and Homeownership
AU - Fischer, Marcel
AU - Astrup Jensen, Bjarne
AU - Koch, Marlene
N1 - no data used
PY - 2024/10/14
Y1 - 2024/10/14
N2 - We show that requiring individuals to contribute a constant share of their labor income to a retirement account increases loan-to-value ratios and typically defers homeownership. We investigate three alternative pension systems: (1) early withdrawals to acquire home- ownership, (2) age-dependent contributions, and (3) a flexible scheme, which builds on the intuition, that it is not important how individuals build up savings as long as they build up sufficient savings, and only forces individuals to save when they miss the age-dependent savings target. All three systems lead to a similar accumulation of wealth, but lower loan- to-value ratios, usually earlier homeownership, and higher welfare.
AB - We show that requiring individuals to contribute a constant share of their labor income to a retirement account increases loan-to-value ratios and typically defers homeownership. We investigate three alternative pension systems: (1) early withdrawals to acquire home- ownership, (2) age-dependent contributions, and (3) a flexible scheme, which builds on the intuition, that it is not important how individuals build up savings as long as they build up sufficient savings, and only forces individuals to save when they miss the age-dependent savings target. All three systems lead to a similar accumulation of wealth, but lower loan- to-value ratios, usually earlier homeownership, and higher welfare.
KW - retirement saving
KW - homeownership
KW - pension system design
KW - loan-to-value ratio
KW - housing market entry
M3 - Working paper
T3 - Netspar Discussion Papers
BT - Mandatory Pension Saving and Homeownership
PB - Netspar
ER -