Andrew Biggs: Study details sources of new IRA contributions in U.S. and UK

Andrew Biggs: Study details sources of new IRA contributions in U.S. and UK
Study finds IRA contributions sources

Andrew Biggs highlights recent research by Attanasio, Banks, and Wakefield examining retirement tax preferences in the U.S. and UK. The study provides a clear explanation of the logic behind these preferences and breaks down the sources of new contributions to individual retirement accounts (IRAs).

Biggs notes that only a very small portion of new IRA contributions is drawn from reduced household consumption, which suggests that other sources make up the majority of contributions.

Biggs has previously analyzed the correlation between household earnings and Social Security replacement rates, finding only a moderate link in earlier research. He has also presented findings that question whether well-funded defined benefit pensions always deliver benefits equal to their costs, as discussed in a recent conference report. These studies contribute to ongoing debates on retirement income and pension design.

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