Households accumulate wealth due to many reasons. One of the most important is the future consumption of wealth in old age when one is no longer working. Public pension systems are used to achieve the same goal, though they are quite diverse. Therefore, the international difference in the value of household wealth may be partially driven by the international differences in public pension systems.
Estimation of the value of social security wealth and the measurement of the impact of the value of social security wealth on augmented wealth inequality is the goal of the research project. We will also measure the degree of substitution between social security wealth and private wealth. Thus, we will be able to assess to what extent households take into account the existence of the public pension system in their allocation decision. The Household Finance and Consumption Survey was the main data source used in the research project. Our research will cover a broad set of EU member states.