The Annuitization of Americans ' Resources : a Cohort Analysis
نویسندگان
چکیده
This paper constructs a unique cohort data set to study the changes since 1960 in the share of Americans' resources that are annuitized. Understanding these changes is important because the larger this share, the more cohorts are likely to consume and the less they are likely to bequeath. Hence, the degree of annuitization affects national saving as well as the transmission of inequality over time. Our findings are striking. Although the annuitized share of resources of younger Americans declined slightly between 1960 and 1990, it increased dramatically for older Americans (those age 65 or more). It doubled for older men and quadrupled for older women. Since the elderly have much higher mortality probabilities than do the young, their degree of annuitization is much more important for aggregate bequests and saving. According to our estimates, aggregate U.S. bequests would now be almost 50 percent larger had the post-1960 increase in annuitization not occurred. In addition, U.S. national saving would likely be substantially larger than is currently the case. clevelandfed.org/research/workpaper/index.cfm
منابع مشابه
Contrastive Analysis of Metadiscourse Markers Used by Non-native (Iranians) vs. Native (Americans) Speakers in Developing ELT Materials
Metadiscourse is a widely used term in current discourse analysis and language education, referring to an interesting, and relatively new approach to conceptualizing interaction between text producers and their texts and between text producers and users. Despite the growing importance of the term, however, it is often understood in different ways and used to refer to different aspects of langua...
متن کاملHealth Expenditure Risk and Annuitization: Evidence from Medigap Coverage
Theoretical research suggests that health expenditure risk can have an ambiguous influence on the annuitization decisions of the elderly. I provide empirical evidence on this linkage, by estimating the impact of supplemental Medicare insurance (Medigap) coverage on the annuity demand of older Americans. I use local variation in prices as an instrumental variable to address the possible endogene...
متن کاملCollective Annuities and Redistribution. Collective Annuities and Redistribution
In a number of countries one observes a steady decline in defined benefits pensions schemes, public or private, funded or unfunded, and a simultaneous expansion of defined contributions plans. One of the consequences of this trend is to deprive individuals at the time of their retirement from the benefit of collective annuitization. Collective annuities can be distinguished from individual ones...
متن کاملThe Impact of Social Security and Other Factors on the Distribution of Wealth
Auerbach et al. (1995), document the dramatic postwar increase in the annuitization of the resources of America’s elderly. Gokhale et al. (1996) suggest that greater annuitization may explain the significant postwar rise in the consumption propensity of the elderly out of remaining lifetime resources. Gokhale et al. (2000) consider the related point that increased annuitization will reduce bequ...
متن کاملIncome and Mental Well-Being of Middle-Aged and Older Americans: Immigrants’ Diminished Returns
Introduction: Although income is among the major social determinants of mental health of middle-aged and older individuals, socially marginalized groups gain less health from their income and other socioeconomic status (SES) resources compared to socially privileged groups. This pattern is called marginalization-related diminished returns (MDRs). Most of the existing knowledge ...
متن کامل