The Increasing Annuitization of the Elderly- Estimates and Implications for Intergenerational Tranfers, Inequality, and National Saving

39 Pages Posted: 27 Apr 2000 Last revised: 11 Apr 2008

See all articles by Alan J. Auerbach

Alan J. Auerbach

University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Laurence J. Kotlikoff

Boston University - Department of Economics; National Bureau of Economic Research (NBER); Gaidar Institute for Economic Policy

David N. Weil

Brown University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: October 1992

Abstract

This paper examines changes over time in the degree to which the resources (human plus nonhuman wealth) of the elderly have been annuitized. Using data from the 1962 and 1983 Federal Reserve Surveys of Consumer Finances we find evidence of an increase in annuitization which is particularly pronounced among the older elderly (those over 75) and among women. The estimated 1983 flow of aggregate bequests to children and grandchildren would have been 20% larger were it not for this increase in annuitization. The change in annuitization may have contributed significantly to the recent decline of the U.S. national saving rate.

Suggested Citation

Auerbach, Alan Jeffrey and Kotlikoff, Laurence J. and Weil, David Nathan, The Increasing Annuitization of the Elderly- Estimates and Implications for Intergenerational Tranfers, Inequality, and National Saving (October 1992). NBER Working Paper No. w4182. Available at SSRN: https://ssrn.com/abstract=226792

Alan Jeffrey Auerbach (Contact Author)

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Laurence J. Kotlikoff

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David Nathan Weil

Brown University - Department of Economics ( email )

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