## How Much Should You Save for Retirement?

_IMF Blog, January 16, 2019_

## Source details

**Canonical URL:** [How Much Should You Save for Retirement?](https://www.imf.org/en/blogs/articles/2019/01/16/blog-how-much-should-you-save-for-retirement)

## Other formats

- [Markdown version](/en/blogs/articles/2019/01/16/blog-how-much-should-you-save-for-retirement/index.md)
- [Structured JSON version](/en/blogs/articles/2019/01/16/blog-how-much-should-you-save-for-retirement/index.json)
- [Bundle manifest](/en/blogs/articles/2019/01/16/blog-how-much-should-you-save-for-retirement/bundle-manifest.json)

## Bibliographic details
- Authors: David Amaglobeli, Era Dabla-Norris, Vitor Gaspar
- Published: January 16, 2019

---

### Overview
- Research uses data from 80 countries to map public (government) and private savings over the next 30 years, given aging populations and the design of pension systems.
- Findings emphasize the interaction between saving and pension systems in an aging world.
- Public spending on pensions will increase by just over 2 percentage points of GDP by 2050, assuming unchanged policies.

### Key findings on saving and aging
- Private saving trends drive the development of national saving.
- In emerging markets and low-income developing countries collectively, relatively young populations lead to increased private saving.
- In aging advanced economies, private saving rates are expected to contract sharply.
- Public spending on pensions will increase in emerging markets and low-income countries where governments have yet to reform pension benefits.
- Generous public pensions lower:
  - public saving—through more pension spending, and
  - private saving—by reducing the incentive to save.
- Low public pensions can drive up private saving as households prepare for mainly self-funded retirement.
- Presence of dedicated pension saving accounts (e.g., Individual Retirement Accounts (IRAs) in the United States, 401(K) style accounts) is associated with higher private saving; in countries with such accounts, private saving is projected to increase, in contrast to countries without them.

### Differences across example countries
- Russia and Australia are both aging and offer dedicated pension saving accounts; however:
  - Pensions in Australia are less generous relative to national income, and
  - Saving in Australia is projected to increase much faster than in Russia.

### Policy simulations and what would allow similar living standards in retirement
- Two simulated policy actions that would allow people to retire at a living standard similar to today’s:
  - A gradual increase in the retirement age from today’s average of 63 to 68 by 2050—at which time life expectancy is also projected to have increased by some 3 years.
  - Saving an additional 6 percent of earnings each year.

### Policy recommendations and considerations
- In countries with generous public pensions:
  - Curtail early retirement or adjust the size of pension benefits to address future funding shortfalls.
- Governments can support retirement preparedness by:
  - Stimulating development of financial sector instruments to encourage voluntary saving.
  - Adopting policies to encourage people to lengthen their productive working lives.
- In emerging markets and low-income countries:
  - Stimulate work in the formal sector to broaden pension coverage and sustainability.
- In countries where private saving is already very high and pension systems are weak (for example, China and Korea):
  - Consider increasing pension system generosity to reduce precautionary saving, and to reduce inequality and old-age poverty.
- Taken together, these policies can:
  - Damp projected declines in national saving,
  - Improve the sustainability of pension systems, and
  - Ensure people have decent living standards in retirement.

*Source: How Much Should You Save for Retirement? — David Amaglobeli, Era Dabla-Norris, Vitor Gaspar, January 16, 2019*

---

## Content in this bundle

- **你该为退休储蓄多少？IMF博客; 2019年1月16日**
  - [你该为退休储蓄多少？IMF博客; 2019年1月16日 (Markdown version)](/external/chinese/np/blog/2019/011619c.pdf.md){rel="alternate" type="text/markdown"}
  - [你该为退休储蓄多少？IMF博客; 2019年1月16日 (PDF)](/external/chinese/np/blog/2019/011619c.pdf){rel="external" type="application/pdf"}
- **退職後の生活に必要な貯蓄額　ダビッド・アマグロベリ　エラ・ダブラ＝ノリス　ヴィトール・ガスパール著　2019年1月15日**
  - [退職後の生活に必要な貯蓄額　ダビッド・アマグロベリ　エラ・ダブラ＝ノリス　ヴィトール・ガスパール著　2019年1月15日 (Markdown version)](/external/japanese/np/blog/2019/011519j.pdf.md){rel="alternate" type="text/markdown"}
  - [退職後の生活に必要な貯蓄額　ダビッド・アマグロベリ　エラ・ダブラ＝ノリス　ヴィトール・ガスパール著　2019年1月15日 (PDF)](/external/japanese/np/blog/2019/011519j.pdf){rel="external" type="application/pdf"}
- **Сколько сбережений нужно для выхода на пенсию?**
  - [Сколько сбережений нужно для выхода на пенсию? (Markdown version)](/external/russian/np/blog/2019/011519r.pdf.md){rel="alternate" type="text/markdown"}
  - [Сколько сбережений нужно для выхода на пенсию? (PDF)](/external/russian/np/blog/2019/011519r.pdf){rel="external" type="application/pdf"}

---

## References

- [عربي](http://www.imf.org/ar/News/Articles/2019/01/15/blog-how-much-should-you-save-for-retirement)
- [Português](https://www.imf.org/pt/News/Articles/2019/01/15/blog-how-much-should-you-save-for-retirement)
- [https://www.imf.org/wp-content/uploads/2019/01/eng-january-4-fad1.png](https://www.imf.org/wp-content/uploads/2019/01/eng-january-4-fad1.png)
- [https://www.imf.org/wp-content/uploads/2019/01/eng-january-4-fad2.png](https://www.imf.org/wp-content/uploads/2019/01/eng-january-4-fad2.png)
- [Chart of the Week: The Cost of Asia’s Aging](https://blogs.imf.org/2017/05/01/chart-of-the-week-the-cost-of-asias-aging/)
- [Aging Japan Puts a Strain on the Financial System](https://blogs.imf.org/2017/08/10/aging-japan-puts-a-strain-on-the-financial-system/)

_Source: https://www.imf.org/en/blogs/articles/2019/01/16/blog-how-much-should-you-save-for-retirement_