Pension Accounting and Personal Saving
- Topics:
- Accounting software
- Tags:
- Accounting,
- Stock Market,
- Stock,
- Pension Plan,
- Pension,
- Payroll Solutions,
- Investment,
- Income,
- Human Resources,
- Finance,
- ...
- Source:
- The CPA Journal
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Overview: According to the U.S. Department of Commerce, the personal saving rate in the United States has declined dramatically, from 10.6% of disposable personal income in 1984 to a low of 2.3% in 2001, before climbing to 3.9% in 2002. Debate rages over the reasons for this decline, The principal sources of private retirement saving in the United States are defined contribution and defined benefit pension plans sponsored by employers, and personal saving arrangements such as IRAs. Assets in pension plans and IRAs have grown considerably over the past two decades. Over the past two decades, contributions to defined contribution plans have risen dramatically. Stock market wealth has had a direct effect on consumption. But stock market wealth is not the only thing that has dragged saving rates down to low levels. The treatment of pension plan contributions and benefits has also played a large role, .Changes in personal saving rates may tell us less about the thriftiness of American families and more about the rules of national income accounts.
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Format: HTML | Date: Sep 2003 | Pages: 1
