Do socioeconomic factors shape tax preferences in retirement savings? Spanish investor preferences for tax attributes in pension plans

Abstract

Abstract Private pension plans have been structured as a retirement supplement and have received fiscal incentives in most developed countries. Investor preferences regarding different tax treatments within the Spanish pension system play a significant role in shaping long-term investment behavior. In this context, the aim of this study is to analyze investor preferences in private pension plans and how socioeconomic variables affect the distribution of these preferences. To this end, a choice experiment was conducted with a sample of 1,287 Spanish pension plan investors. The econometric model applied is the mixed logit, which allows for the estimation of individual preference parameters and the analysis of their distribution. The main findings reveal a generally low preference for tax-related attributes in pension plans, with marked differences when variables such as age, gender, income, household size, and educational level are considered. These results provide a foundation for the development of appropriate strategies both for financial planners and advisors, as well as for the design of economic policy in terms of taxation.