Work

Retirement Savings Incentives for Low‐ and Middle‐Income Individuals: Does Government Funded Matching Change Behaviour?*

Year: 2026

Type: article

Abstract: We evaluate a government‐funded matching policy for retirement savings contributions targeted at low‐ and middle‐income individuals. Using a difference‐in‐difference approach, we exploit administrative changes to the Australian Government's retirement contribution matching (co‐contribution) policy to identify the impact of the programme on savings behaviour. A reduction in the income eligibility threshold led to a 0.9 percentage point decline in the share of individuals who made a contribution and a 6.3 per cent decrease in the value of retirement contributions. Conditional on making a non‐concessional (post‐tax) contribution prior to the change in eligibility rules, the average value of individual contributions declined by between 16 and 22 per cent.

Source: Economic Record

DOI: 10.1111/1475-4932.70032

Authors: Kristen Sobeck, Robert Breunig

Institution: Australian National University

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $2,900