Dissaving After Retirement: Testing the Pure Life Cycle Hypothesis / B. Douglas Bernheim.

Format:

Book

Author/Creator:

Bernheim, B. Douglas.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1409.

NBER working paper series no. w1409

Language:

English

Subjects (All):

Retirement.

Saving and investment.

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Dissaving After Retirement

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1984.

Cambridge, Massachusetts : National Bureau of Economic Research, 1984.

Summary:

In this paper, we examine several aspects of saving and dissaving after retirement. First, we argue that existing evidence on bequeathable age-wealth profiles is suspect, and provide new evidence based on longitudinal data indicating that significant dissaving may occur,particularly among single individuals and early retirees. Second, we argue that, in the presence of annuities, estimates of dissaving should be adjusted by including the simple discounted value of benefits in total wealth. Such adjustments reveal relatively little dissaving among any group of retirees. Finally, we test the pure life cycle hypothesis by observing the behavioral response of rates of accumulation to involuntary annuitization, and find empirical refutation of life cycle implications.

Notes:

Print version record

July 1984.