Tag: retirement planning
In summer 2009, the CRR surveyed individuals ages 45-59 on how the market crash has affected their retirement planning. Key findings from our analysis are: In response to the crisis, over 40 percent expected to work longer/save more. Those who were highly distressed were more likely to act. After receiving “reliable” financial advice, the majority…
Abstract This paper develops and estimates a closed-form model of Bayesian learning of subjective survival beliefs within the framework of Choquet decision theory. Data from the Health and Retirement Study (HRS) indicate that, on average, young respondents underestimate their true survival probability whereas old respondents overestimate their survival probability. Such subjective beliefs violate the rationa…
