Working Paper: NBER ID: w15601
Authors: Charles Y. Horioka
Abstract: In this paper, I survey the previous literature on the saving behavior of the aged in Japan and then present some survey data on the saving behavior of the aged in Japan that became available recently. To summarize the main findings of this paper, virtually all previous studies as well as the newly available data I analyze find that the retired aged dissave and that even the working aged dissave, at least at advanced ages. Moreover, there has been a sharp increase in the dissaving of the retired aged since 2000, with the increase being due primarily to reductions in social security benefits, increases in consumption expenditures, and increases in taxes and social insurance premiums. These findings are consistent with the life-cycle model and suggest that this model is highly applicable (and becoming increasingly applicable over time) in the case of Japan.
Keywords: saving behavior; aged; Japan; lifecycle model; dissaving
JEL Codes: D12; D91; E21
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| reductions in social security benefits (H55) | dissaving behavior of the retired aged (J26) |
| increases in consumption expenditures (E20) | dissaving behavior of the retired aged (J26) |
| increases in social insurance premiums (H55) | dissaving behavior of the retired aged (J26) |
| working aged dissave at advanced ages (J26) | broader trend of dissaving among the aged population (D14) |
| age structure of the population (J11) | saving rates (E43) |