Tag: adequacy of retirement savings
I keep worrying that people approaching retirement with 401(k)/IRA balances don’t realize that they owe taxes on their accumulations. I’m sympathetic. It’s hard to accept that the pile that we’ve contributed to and nursed over our working life is not all ours. Of course, we have all benefited throughout the years by not having to…
Abstract This paper provides new evidence on the adequacy of household retirement saving. We depart from much previous research on the adequacy of saving in two key ways. First, our underlying simulation model of optimal wealth accumulation allows for precautionary saving against uncertain future earnings. Second, we employ data on lifetime earnings. Using data from…
