We explore the implications of mandatory minimum contributions to tax-deferred retirement accounts over the life cycle. These contributions defer housing market entry and increase loan-to-value ratios. We propose a flexible retirement saving scheme that does not force individuals to build up...

In this paper, we explore the life cycle consumption-savings problem in a stylized model with a risk-free investment opportunity, a tax-deferred retirement account, and deterministic labor income. Our closed form solutions show that liquidity constraints can be severely binding; in particular in...