Tag: late-life risks
The brief’s key findings are: As life expectancy rises, more retirees will face late-life financial risks, including: high health costs, financial mistakes due to cognitive decline, and widowhood. To date, the research literature suggests that these risks severely affect only a minority of retirees, but the impact may become more widespread in the future. The reasons includ…
Abstract This paper explores life insurance holdings from a general equilibrium perspective. Drawing on the data explored in Chambers, Schlagenhauf, and Young (2003), we calibrate an overlapping generation’s life cycle economy with incomplete asset markets to match facts regarding the uncertainty of income and demographics. We then estimate that life insurance holdings for the purpos…
