Who is saving and how much? New evidence from Brazil

Abstract

Purpose This paper aims to examine the economic and social factors that influence individual savings in Brazil based on the life cycle hypothesis (LCH). Design/methodology/approach The authors use data sourced from 2017 to 2018 Household Budget Surveys to analyse the individual savings of Brazilian aged from 18 to 80. Findings Using a conventional logistic regression model, results of this study suggest that several demographic characteristics, such as education, economic and social factors, influence individual savings in Brazil. For instance, this paper finds a non-linear relationship between age and individual savings, following LCH concepts. Originality value These data provide us with a unique opportunity to investigate the determinants of individual savings in Brazil. In examining this question, this study contributes to the literature by providing new evidence to help the current political debate about the Brazilian social security system. Against this background, social policies should be designed to promote savings, especially in groups with a lower likelihood of savings.