UM06-11: Designing Optimal Pension Payouts Using Life Annuities and Phased Withdrawals: A Portfolio Approach

This research project will evaluate the key risk and return trade-offs of alternative ways of handling the payout phase of a defined contribution or Social Security personal account. This project will compare these outcomes for a life annuity versus a…

UM06-12: Financial Risk, Retirement, Saving and Investment

How does the riskiness of returns to retirement saving affect retirement, saving, and the optimal portfolio mix? The proposed project will utilize a dynamic, stochastic, structural econometric model of retirement, saving, and optimal portfolio mix to analyze how risky returns…

UM06-13: The Effect of Abolishing the Earnings Test on Labor Market Behavior Before Age 65

This proposal takes a dynamic approach to analyze the effect of eliminating the earnings test on retirement expectations and labor supply of those younger than 65. Prior studies have only examined this question for 65-70 year olds, and in a…

UM06-14: Pathways to Bad Retirement Outcomes

There is increasing interest among policy makers in measuring well-being in ways that go beyond purely economic indicators, also with special focus on older individuals who constitute an increasing fraction of the population.  However there is little consensus on which…

UM06-15: The Role of Spousal Health Insurance Provision in Retirement Decisions

Health insurance coverage in the years prior to retirement is particularly important because it protects the household from the financial risks of uninsurance as well as the health consequences of delaying care while uninsured.  While results from the retirement “job…

UM06-16: Assessing the Risks and the Costs of the Risks Posed by Social Security’s Potential Insolvency

Social Security must raise taxes or cut benefits, either now or later, to close its $11.1 trillion funding gap. This project measures the welfare effects of alternative adjustments and the costs of delaying the decision. Part 1 uses the Survey…

UM06-17: Evaluating Social Security Reforms using Probabilistic Population Forecasts in a Life-cycle Model of Social Insurance

The extent of the Social Security crisis, defined by the depletion of the trust fund and the long-run sustainability of the system, depends on a set of demographic and economic assumptions. A scenario-based approach is commonly considered in order to…

UM06-18: Health Risk in Retirement and Retirement Wealth

With the approaching retirement of the baby boom cohort and concerns about the solvency of Social Security, there has been growing interest in understanding savings behavior. Being able to characterize the underlying motivation for savings will be important to researchers…

UM06-19: Who Annuitizes and How Do System Rules Shape These Choices? The Case of Chile

Annuitization is often considered socially desirable as a payout mode from pension plans, because it provides a lifelong income stream and therefore ensures that retirees will not run out of money. However, myopia and adverse selection may deter annuitization. This…

UM06-20: Retirement Savings Portfolio Management

Proposals for private investment of Social Security contributions predict greater individual returns than would arise under the current system, yet much empirical evidence suggests that many individuals do not make sound investment decisions. To address the future role of social…