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An average employee might save less than half of that.
It is also possible that Americans might save less, if they believe that individual accounts are a more reliable means of support in old age than the existing system.In any event, the creation of private accounts will not in itself eliminate the unfunded liabilities implicit in today's pension system.
But it turns out the reform might save less than expected, the Atlanta Journal-Constitution reported last week.
Similar(56)
Households might then save less and spend more.Structural reform and macroeconomic stimulus must proceed hand in hand.
The children of the wealthy might work and save less, conscious that they were going to inherit.
(Thinking through this exercise is a good example of why it is so hard to consistently make money in markets without insider trading).Households and businesses might save relatively less and spend relatively more, which would lead to price increases, as theory suggests.
Better social safety-nets might encourage Asians to save less.
In Ireland the hope has been that clarity about the fiscal outlook might persuade consumers to save less and spend more.
But households, already worried about how the government will pay their future pensions, might save, not spend, any tax cuts.Against the 11% of their income put aside by Germans, American households save less than 1%.
Such a boost enough to waive all school fees, nationally might persuade ordinary citizens to save less and spend more, leading to the rebalancing of consumption and investment that policymakers have long sought.The authorities in Beijing are well aware of these arguments.
In other words, they save less because they have less.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com