Savings after Retirement: A Survey

Posted: 18 Nov 2016

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

Multiple version iconThere are 2 versions of this paper

Date Written: October 2016

Abstract

The saving patterns of retired US households pose a challenge to the basic life-cycle model of saving. The observed patterns of out-of-pocket medical expenses, which rise quickly with age and income during retirement, and heterogeneous life span risk can explain a significant portion of US saving during retirement. However, more work is needed to distinguish these precautionary saving motives from other motives, such as the desire to leave bequests. Progress toward disentangling these motivations has been made by matching other features of the data, such as public and private insurance choices. An improved understanding of whether intended bequests left to children and spouses are due to altruism, risk sharing, exchange motivations, or a combination of these factors is an important direction for future research.

Suggested Citation

De Nardi, Mariacristina and French, Eric and Jones, John B., Savings after Retirement: A Survey (October 2016). Annual Review of Economics, Vol. 8, pp. 177-204, 2016, Available at SSRN: https://ssrn.com/abstract=2870844 or http://dx.doi.org/10.1146/annurev-economics-080315-015127

Mariacristina De Nardi (Contact Author)

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