Savings and Wealth Accumulation: Measurement, Influences and Institutions

Abstract

Abstract. Savings and wealth accumulation are important dimensions of policy and research debates. This special issue comprises a collection of survey articles on topical issues ranging from the effects of access to credit, the rise of Islamic finance and sovereign wealth funds, the measurement of wealth inequality and genuine savings, the distribution of wealth across generations and retirement savings. We tend to not think about savings and wealth accumulation when times are good and incomes are rising. But when income growth stops and rainy days arrive, savings and wealth jump back to the forefront of our minds, as individuals, policy makers and researchers.Developments over the past twenty-five years are a case in point. During the boom years of the 1990s and early 2000s, incomes grew rapidly reflecting sustained high growth rates of economic activity and an unprecedented rise in commodity prices. Furthermore, historically low interest rates in many advanced economies reduced the return on saving and lowered the cost of borrowing, contributing to higher household consumption and indebtedness and low savings rates.3 Savings rates, measured as the difference between income and consumption, have not only been low and indebtedness rising at the household level, but also at the country level, demonstrated by large and sustained current account deficits and rising debt in many advanced economies.When the boom ended with the onset of the global financial crisis in 2007, it became clear that much of the wealth created over the previous two decades was all but on paper and individuals and countries had very few assets to fall back on. Chair Yellen's quote at the beginning of this article is applicable not only to American families but to families and governments around the world. The lack of assets has played an important part in the painfully slow economic recovery post crisis. Consumers have been hesitant

Research review for effects of investment on polarization of wealth

“…One issue that has attracted considerable attention recently among scholars interested in inequality and conflict is polarization [ 8 ]. Savings and wealth accumulation are important dimensions of policy and research debates [ 9 ]. Global income inequality—the sum of inequality within and between nations—is massive today, the legacy of uneven growth in the world's regions since the advent of the industrial revolution [ 10 ].…”

Determinants of Corporate Customers’ Intention to adopt Islamic Wealth Accumulation Products in Pakistan

“…Normally individuals do not think about wealth accumulation and saving when they are passing through good current income, but when suddenly short fall come in income or payments are freeze then it is realized that there must be saving or having accumulation of wealth this attracts the attention of researchers and policy makers (Claus & Claus, 2015). In the conventional wealth accumulation products, the main missing element is the spiritual aspirations which are targeted by the Islamic wealth accumulation products.…”

“…Worth of C&B can be increased among investor by increasing level of benefits and controlling the cost to minimum level (Lovelock & Wirtz, 2011). When there is huge competition between wealth accumulation products offered by conventional and Islamic finance, it is suggested that Islamic financial institutions may aide inclusion in wealth accumulation more than conventional financial institutions which reflect the core principles of Islam (Claus & Claus, 2015). Given that Islamic financial sector is growing to be a significant segment in global financial sector it is worthwhile to investigate whether corporate client adopt Islamic wealth accumulation products for wealth accumulation in Pakistan.…”

Rynek finansowy wobec starzejącego się społeczeństwa / Financial market towards an ageing society

“…Można zauważyć, że każde pokolenie żyje coraz bardziej konsumpcyjnie, zwracając większą uwagę na bieżącą konsumpcję, a nie na długoterminowe oszczędzanie. W tym kontekście widoczne są również tendencje zmian sposobów dystrybucji majątku z pokolenia na pokolenie [Claus, Claus 2015]. Zmiany te będą stanowić kolejne wyzwanie dla ERF.…”