Jointly supported by Monetary Economics Seminar of Kobe University / Kobe University RIEB Workshop on Economic and Political Research on Latin America
|Date & Time||Tuesday, March 29 2022, 10:00am - 11:30am|
|Place||Online Seminar by Zoom|
|Intended Audience||Faculty, Graduate Students, and People with Equivalent Knowledge|
|Remarks||Please complete the registration before March 24, 2022. Meeting URL will be informed later.
Registration Form for March 29 (Due: March 24)
- The Impact of the Chilean Pension Withdrawals during the Covid Pandemic on the Future Savings Rate
- Carlos MADEIRA（Senior Economist, Financial Research Area, Financial Policy Division, Central Bank of Chile）
- Chile implemented pension withdrawals during the Covid pandemic at a much larger scale than other OECD countries. Estimating a life cycle model with I find that households consume a significant fraction of their noncontributory pension wealth, implying a tradeoff between improving public pensions and increasing savings. Counterfactual simulations show that the pandemic pension withdrawals may decrease the future savings rate by 1.7%. Furthermore, policy reforms may decrease the aggregate savings rate by 0.2% for each percentage point of solidarity rate tax from current workers. The solidarity taxes increase substantially the pension income of poor retirees, but their effects decline over time.