Couples' and Singles' Savings after Retirement

51 Pages Posted: 23 Sep 2015

See all articles by Mariacristina De Nardi

Mariacristina De Nardi

University College London, Economics Dpt.; Federal Reserve Bank of Chicago; National Bureau of Economic Research (NBER) - Public Economics

Eric French

Department of Economics; Institute for Fiscal Studies (IFS)

John Bailey Jones

Federal Reserve Bank of Richmond; SUNY at Albany - School of Business

Date Written: July 2015

Abstract

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 about leaving bequests to children and others. Using AHEAD data, we first estimate the model and we then evaluate the relative importance of the various savings motives and the risk exposure of couples’ versus singles.

Keywords: Social Security, retirement, self-insure, means-testing

Suggested Citation

De Nardi, Mariacristina and French, Eric and Jones, John B., Couples' and Singles' Savings after Retirement (July 2015). Available at SSRN: https://ssrn.com/abstract=2664111 or http://dx.doi.org/10.2139/ssrn.2664111

Mariacristina De Nardi (Contact Author)

University College London, Economics Dpt. ( email )

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Eric French

Department of Economics ( email )

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John B. Jones

Federal Reserve Bank of Richmond ( email )

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SUNY at Albany - School of Business ( email )

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