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Older people often express regret about financial decisions made earlier in life that left them susceptible to old-age insecurity. Prior work has explored one outcome, saving regret, or peoples’ expressed wish that they had saved more earlier in life. The present paper extends attention to...
Persistent link: https://www.econbiz.de/10014235986
This paper is the first to non-experimentally establish a causal relationship between households’ mortality beliefs and …’s expectation formation, I exploit the death of a close friend as an exogenous shock to the salience of mortality of a household … consumption life-cycle model by this shock to mortality beliefs to explore how personal experiences are incorporated into the …
Persistent link: https://www.econbiz.de/10013292543
This paper examines how individuals respond financially to severe health shocks by analyzing early withdrawals from retirement savings following the initiation of cancer treatment (chemotherapy). Using comprehensive administrative data from Australia that link health, tax, and demographic...
Persistent link: https://www.econbiz.de/10015413373
We investigate the relationships between measures of financial literacy, applied financial literacy, financial judgment and measures of fluid and crystallised cognitive ability. Given an ageing population and the responsibility for managing savings in retirement, this relationship is of...
Persistent link: https://www.econbiz.de/10013028535
Over the life-cycle, wealth holdings tend to be highest in the early part of retirement. The quality of financial decisions among older adults is therefore an important determinant of their financial security during the asset drawdown phase. This paper assesses how financial literacy shapes...
Persistent link: https://www.econbiz.de/10012113846
We analyze the value of insurance when individuals have access to credit markets. Loans allow consumers to smooth financial shocks over time, decreasing the value of consumption smoothing from insurance. We derive formulas for the value of insurance that can be taken to data, and show how that...
Persistent link: https://www.econbiz.de/10014544674
We re-examine insurance purchases when life insurance and life annuities carry loads. The life cycle literature says that it is optimal to participate in these insurance markets throughout life, even under loads. A life annuity phase backs directly onto a life insurance phase. However, the...
Persistent link: https://www.econbiz.de/10014254442
We introduce a simple extension to the CBDX model to project cohort mortality rates to extreme old age. The proposed … sample age range, then splices the sample and projected age effects, and uses the spliced age effects to obtain mortality … depend on projections of extreme old age mortality rates …
Persistent link: https://www.econbiz.de/10014361367
This article shows how cohort mortality rate projections of mortality models that involve age effects can be improved …
Persistent link: https://www.econbiz.de/10012839795
Persistent link: https://www.econbiz.de/10002519721