Do smaller public employer pensions spur more saving?

Abstract

The brief's key findings are: In theory, workers would increase their supplemental saving in response to lower pension income, but do they in practice? The answer matters for state and local workers, as pension income varies, some plans are poorly funded, and not all workers have Social Security. The results show that workers with less expected pension income are more likely to save, but the effects are small, and they do not respond to the other factors.  The takeaway is that if public employers reduce pension benefits, workers are unlikely to make up the difference by saving more on their own.