Macroeconomic Aspects of Retirement Savings

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In this issue:

- Executive Summary

- Introduction

- Saving for our Collective Old Age

- Macroeconomics of Savings and Investments

- Individual Households’ Incentives to Save

- Overall Conclusions

- Excerpt from Executive Summary:

The adequacy of future retirement income to support individual target levels of consumption for Ontarians and Canadians is an important problem for both individuals and governments. Indeed, on average, Canadian workers are far from saving enough to support in retirement a standard of living that they would find satisfactory. Unless the economy generates higher labour productivity growth than is currently projected, governments in the future will be under great pressure to tax an almost static population of workers to support transfers to a very fast growing population of elderly.

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