Tag: wealth accumulation
The press keeps asking how zero or negative interest rates would affect retirement security. Here’s my answer, and I’m sticking with it until someone corrects me. The answer depends on a person’s stage in life. Those starting out their careers would be affected in two ways. The bad news is that they would have to…
Abstract Much of the disagreement over whether households are adequately prepared for retirement reflects differences in assumptions regarding the extent to which consumption declines when the kids leave home. If consumption declines substantially when the kids leave home, as some life-cycle models of retirement saving assume, households need to achieve lower replacement rates in retirement…
