arbiter
JournalsAccount

Mandatory pension contributions, household consumption, and savings

Linda Sandris Larsen et al.

Journal of Pension Economics and Finance2025https://doi.org/10.1017/s147474722510005xarticle
AJG 2ABDC B
Weight
0.50

Abstract

Using Danish register data, we study whether individuals save enough to maintain almost all (90%) of their pre-retirement consumption. We find that 85 percent do, largely due to mandatory labour market pension contributions. The remaining 15 percent are less likely to have mandatory pension schemes and do not compensate for the lack thereof via voluntary private savings. However, mandatory contributions come at the cost of lower consumption and non-retirement savings during working years. Individuals experiencing the largest increases in mandatory pension contributions accumulate less non-retirement wealth and consume less before retirement compared to those with small increases.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1017/s147474722510005x

Or copy a formatted citation

@article{linda2025,
  title        = {{Mandatory pension contributions, household consumption, and savings}},
  author       = {Linda Sandris Larsen et al.},
  journal      = {Journal of Pension Economics and Finance},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1017/s147474722510005x},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Mandatory pension contributions, household consumption, and savings

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.