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How well can individuals approaching retirement estimate their future pension benefits
| Content Provider | Semantic Scholar |
|---|---|
| Author | Maunu, Tallamaria |
| Copyright Year | 2007 |
| Abstract | We study the pension benefit expectations of Finnish over 44-year-old workers. 62 per cent are able to give an estimate on future pensions, while the rest cannot give any. The subgroups that give higher estimates are men, the educated, and those who are working compared to those not in the labour force and the unemployed. Those who have higher registered pension rights also give higher estimates. When compared to labour market earnings, we find that expecting a replacement rate of approximately 60 per cent is common, although there is a great variation in the expected replacement rates. 37 per cent of the estimates fall in the range of 75–125 per cent of the registered pension rights, and when the pension rights are calculated to include the future career as well, the share of good estimates increases to a half. Most of the estimates that do not fall close to the registered pension values are overestimations, which suggests that the individuals expect to accrue more pension rights in the future career. The results suggest that although variation is very high, in general Finnish workers have reasonably realistic expectations on their future pensions. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.julkari.fi/bitstream/handle/10024/129068/Howwellcanindividualsapproachingretirementestimatetheirfuturepensionbenefits.pdf?isAllowed=y&sequence=1 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
