During the aftermath of the financial crisis, certain paradoxical trends have emerged in Europe. Firstly, despite the context of economic adjustment and restructuring, the employment rate of older workers has increased in most countries, and secondly, saving rates have remained remarkably resilient to the interest rate squeeze pursued by central banks as an economic stimulus. The question arises, whether lower interest rates effectively discourage or rather encourage saving among older workers, or even constitute an incentive to work longer, in case their saving strategy aims at maintaining a standard of living after retirement. The working paper adresses this issue through a model based approach.

Pieejams