How to Spend and Invest Retirement Savings

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How to Spend and Invest Retirement Savings

The question of post-retirement optimal consumption and investment of retirement savings is addressed. This problem has received considerably less attention than that of how to invest for retirement. With the increase in life span and an increase in private pension funds, a retiree has considerable flexibility in both how to consume and how to continue to invest their retirement funds. Our inte...

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How Accurate are Expected Retirement Savings?

This paper examines the ability of workers nearing retirement to report their expected retirement savings, where retirement savings refers to funds held in savings, checking, and investment-type accounts. Responding to such a question is likely to be difficult, even for those who are near retirement, because it requires respondents to assess when they will retire, their likely income stream bet...

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Tax Policy and Retirement Savings ∗

Governments around the world spend hundreds of billions of dollars subsidizing retirement savings through various tax preferences. This paper reviews the economics literature on retirement savings, with a particular focus on recent advances using behavioral economics and high-quality administrative data. This literature suggests that tax subsidies may not be an effective policy to increase reti...

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Savings after retirement: A survey;

Retired U.S. households, especially those with high income, decumulate their assets more slowly than implied by the basic life cycle model. The observed patterns of outof-pocket medical expenses, which rise quickly with age and income during retirement, and longevity, which also rises with income, can explain a significant portion of U.S. retirement saving. However, more work is needed to disen...

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Couples and Singles’ Savings After Retirement

We model the saving problem of retired couples and singles facing uncertain longevity and medical expenses in presence of means-tested social insurance. Households can save to self-insure against uncertain longevity and medical expenses, and to leave bequests. Individuals in a couple can be altruistic towards their spouse and other heirs and split bequests optimally. Single people can care abou...

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ژورنال

عنوان ژورنال: Annals of Operations Research

سال: 2003

ISSN: 0254-5330

DOI: 10.1023/b:anor.0000004770.40172.16