ABSTRACT
This chapter focuses on the relationship between pension structure and national saving. It presents the discussion of a possible linkage between economic growth, the structure of financial markets, and pension reform. The chapter explores what is known about the relationship between pension institutions and household saving. It looks at the relationship between pension institutions, government saving rates, and a nation’s total saving rate. The impact of pension operations on national saving and investment is one of the most hotly debated topics in pension policy. Opinions differ about the possibility of structuring pension policies to encourage productive investment without sacrificing other important social objectives. Investment increases the amount of capital available for each worker to use and facilitates the introduction of new, more efficient production techniques. Several analysts have developed quantitative estimates of the potential economic gain from changing national pension programs in a way that they believe would lead to increased national saving and investment.
