Planning for old age: household savings in Sweden in the early 20th century
Room 1 Session 7: Life cycles incomes and relief during stages of economic hardship organized by Anton Svensson and Louise Cormack
Abstract
The effects of pensions and other social insurance programs on household savings are much debated (Attanasio & Brugiavini 2003; Hurd et al. 2012; Feng et al. 2011). This topic is addressed in a study for Sweden, which focuses on savings in life and endowment assurances for blue-collar workers and subordinate officials. In 1914, universal public old-age pensions were introduced and the extent of occupational pensions was largely widened. This study of Swedish household budget surveys shows that public pensions stimulated savings for old age as long as the sum total of the two was insufficient for a decent retirement. The results correspond with studies of late nineteenth century France and early twentieth century Britain (Bourdieu et al. 2011; Johnson 1984).
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