Économie et Statistique n° 472-473 - 2014Wealth and savings behaviour - The input of the 2010 Wealth survey: savings behaviour, inequalities, retirement and lifecycle, behaviour when faced with risk
Constitution of an additional retirement income: what are the determining factors?
What makes households keep long term savings products with a view to additional financing of their retirement? An econometric analysis of the levels of pension and life insurance savings products from the data at the latest Wealth survey provides some answers. This survey integrates the new savings products specifically dedicated to the additional financing of retirement set up following the reform of the retirement system in 2003. With the help of decision models (bivariate probits), we show that life insurance contracts and retirement savings are complementary and guided by the same factors. Age and the composition of the household remain the essential determining factors in holdings-related behaviour. The younger generation opts less frequently for that type of product whereas couples have additional grounds for constituting long term savings, namely the protection of the surviving spouse. People who are self-employed, whether or not still in activity, also opt more frequently than employees in the private sector for savings products that can be mobilised to finance their retirement. Furthermore, after a study of the standard of living of the household concerned, not having a university degree proves to have a relatively high significant and negative impact on holding any life insurance and retirement savings contracts. It increases the probability of not having any savings product that can be mobilised for retirement by 8%. In such circumstances, information on retirement and pensions, in addition to basic economic and financial education, could prove to be an effective tool to encourage people to take out life insurance as a form of savings for their retirement.