Tag: retirement income

Senior man calculating finances

Abstract Previous research finds a systematic fall in consumption at retirement, even when these retirements are expected, which implies households do not behave as predicted by the lifecycle/ permanent income hypothesis. However, the worker’s expected date of retirement is typically predicted using an instrument – age – that we show to be correlated with unexpected…

Social Security sign in a garden

Abstract In December 2001 the President’s Commission to Strengthen Social Security published a report describing plans to reform Social Security through the introduction of new, privately managed, defined-contribution pension accounts. The new accounts are to be financed by diverting a portion of payroll taxes that are now used to finance pensions under the existing defined-benefit…