Encouraging Savings through Tax-Preferred Accounts

To boost their domestic saving rate, many OECD countries have introduced savings accounts that offer tax advantages, called tax-preferred savings accounts. This report describes and analyses various tax-preferred savings accounts, excluding pension-related accounts, in a cross-section of 11 OECD countries. Based on a comparison of results, the report then answers the following questions: (1) which income groups benefit the most from these accounts (2) to what extent do these accounts generate additional savings and (3) how much tax revenue is foregone due to these accounts.Based on the findings, the report also suggests measures on how to improve the effectiveness of tax-preferred savings accounts.