We establish an empirically based lifecycle model to gauge savings and replacement rates for maintaining a steady living standard over life. We consider a variety of scenarios and demonstrate that savings rates vary substantially with individuals' economic and demographic situations as well as...

We compare wealth management strategies for individuals in retirement, focusing on trade-offs regarding wealth creation and income security. Systematic withdrawals from mutual funds generally give opportunities for greater wealth creation at the risk of large investment losses and income...

This paper investigates the influences on retirement behavior among older workers who were surveyed by the Health and Retirement Study (1992-2004). It is found that increases in all categories of wealth (pension, housing equity and other financial wealth) raise the probability of retiring, while...

This paper focuses on the use of reverse mortgages or home equity conversion mortgages (HECMs) to enhance retirement security. If present trends continue, many American households working today will face a significant retirement funding gap, and this study asks whether reverse mortgages can be...

This paper derives optimal equity-bond-annuity portfolios for households who face stochastic capital market returns, differential exposures to mortality risk and uncertain uninsured health expenses, and differential Social Security and defined benefit pension coverage. The results show that the...

This study quantifies the possible consequences to stakeholders of reforms to the excise tax on reversions of excess pension assets. Under the U.S. Pension Protection Act of 2006 (PPA), funding in defined benefit plans is likely to improve significantly. Many plans may become overfunded over...

This paper addresses three questions related to limits on DC contributions. The first is whether statutory limits on tax-deductible contributions to defined contribution (DC) plans are likely to be binding, focusing on households in various economic situations. The second is how large is the tax...

This paper explores the extent to which retirees can and do insure themselves against longevity risk in private pension plans. We first review the theoretical and empirical results on the value of annuities, and discuss reasons why households may choose not to further insure themselves against...

This paper presents new evidence on the costs of purchasing private annuity contracts to spread a given stock of assets over an uncertain future lifetime. It also describes the operation of individual annuity arrangements within two large group retirement saving plans. First presents information...