Financial Saving for Retirement: Ownership Behaviour Patterns and Amounts Invested

Abstract

Saving for retirement increased slightly in France in the past decade. The 2004 Household Assets Survey gives a picture of the situation before the August 2003 pension reform: it covers instruments held by households in anticipation of retirement and the share of such assets in their total financial portfolios. This paper studies four long-term saving vehicles for which retirement planning is indicated as motivation in the questionnaire: the Plan d'Épargne Populaire (PEP), annuity plans, securities, and retirement saving instruments proper. The household's financial resources is chiefly a determinant of long-term saving products ownership. By contrast, the retirement saving decision and the ratio of sums invested to total financial assets tend to be positively influenced by the age of the household reference person. Occupational status is also a significant determinant of the ownership of long-term assets for retirement.Retirement, Saving, Discrete Choice Models