2007
UM07-04: Managing the Risk of Life
People’s income in old age depends importantly on complicated financial decisions, such as the annuitization of personal accounts. The standard economic framework of the Yaari model assumes that agents are risk neutral with respect to the length of life. This…
UM07-05: Are 40l(k) Saving Rates Changing? Cohort/Period Evidence from the HRS
This research will examine the determinants of participation in 401(k) plans and the rate of saving among participants, using two cross-sections of data from the Health and Retirement Study on workers ages 51-56 representing two cohorts: the original HRS cohort…
UM07-06: Extra Help: Take-up of the Social Security Administration’s Low-Income Subsidy Program for Part D of Medicare in 2006.
This project will examine take-up rates for Social Security’s low-income subsidy program for the new Medicare Part D prescription drug benefit. It appears that take-up will be well below potential eligibility. An economic model can be used to identify factors…
UM07-07: Adequacy of Economic Resources in Retirement and Returns-to-scale in Consumption
Most assessments of the adequacy of retirement resources are expressed as a comparison of pre-retirement income to post-retirement income. Yet, among couples a substantial fraction of retirement years is spent by the surviving spouse living alone. To the extent that…
UM07-08: Estimating the Health Effects of Changes in Retirement Age
We propose to estimate the magnitude of any direct effect of retirement on health. Since retirement is endogenous to health, it is not possible to estimate this effect by comparing the health of individuals before and after they retire. As…
UM07-09: How do Immigrants Fare in Retirement?
Immigrants may enter retirement at a significant financial disadvantage. Under current Social Security rules, immigrants are likely to receive lower benefits than US born workers. In this project we will examine how immigrants fare under Social Security and how other…
UM07-10: Planning and Financial Literacy Among US Households: New Evidence from the Rand Internet Panel
To gain insights into how workers make saving and investment decisions, Lusardi and Mitchell helped develop a new module on planning and financial literacy for the 2004 Health and Retirement Study. Their findings are striking: financial illiteracy is widespread among…
UM07-11: Investment Patterns and Trading Behavior in 401(k) Pension Accounts
Previously the author evaluated trading patterns in individually-managed 401(k) accounts, demonstrating that most plan participants trade only rarely in their retirement accounts, though some do engage in active fund switching. Some of the trading results from employers altering fund menus;…
UM07-12: Children and Household Wealth
Our project examines the effects of children on household wealth accumulation. Children affect wealth for several reasons. Family size is correlated with lifetime earnings, so optimal asset accumulation varies depending on the household’s place in the income distribution. The number…
UM07-13: The Effects of Health Insurance and Self-Insurance on Retirement Behavior.
To assess the role of Medicare and employer-provided health insurance in determining retirement, we will estimate and analyze a dynamic programming model of saving and retirement that accounts for uncertain medical expenses, Social Security, and social insurance. We extend our…