Precautionary Savings in the Netherlands: Effect of the Great Recession and European Crises

  • Jantine Timmerman Jantine Timmerman

This paper focuses on the effect of the economic downturns in Europe during 2008-2014 and analyzes whether precautionary savings show deviating levels compared to pre-crisis and post-crisis periods. Precautionary savings in the Netherlands was 5% lower in the period after the crisis when the subjective earnings variance is used as proxy for income uncertainty. When the subjective unemployment risk variance is used as proxy, the pre-crisis period exhibits 10% lower precautionary savings. Risk aversion does not influence the level of one’s level of precautionary savings.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

MORE ABOUT NETSPAR


Mission en strategy           •           Network           •           Organisation           •          Magazine
Board Brief            •            Actionplan 2023-2027           •           Researchagenda

ABOUT NETSPAR

Our partners

B20180327_logo_PGB-Pensioendiensten_grijswaarden
B20160708_aegon
B20160708_maastricht university
B20160708_B20160615_Stichting-van-de-Arbeid-logo
B20160708_radboud
View all partners