UM05-10: The Impact of Misperceptions about Social Security on Saving and Well-Being
Existing research comparing expectations and realizations of Social Security income suggests that many people overestimate their future retirement income. If this affects their retirement savings, it implies that people have to revise their consumption patterns in retirement and are faced with a reduction of well-being. This influences the efficacy of Social Security income as a tool to assist the elderly in maintaining their living standards. We propose to study whether deviations between expected and realized Social Security income affect well being after retirement, measured in terms of total consumption expenditures and with several self-reported indices of satisfaction and well-being.