Measuring Dissaving Out of Retirement Wealth

TitleMeasuring Dissaving Out of Retirement Wealth
Publication TypeReport
Year of Publication2007
AuthorsLove, DA, Smith, PA
InstitutionSocial Science Research Network
Call Numbernewpubs20070501_SSRN-id968431.pdf
KeywordsConsumption and Savings, Health Conditions and Status, Net Worth and Assets

The approaching retirement of the baby boomers, accelerating trend from DB to DC pension plans, and growing uncertainty over the solvency of Social Security all raise important questions about the ability of households to finance their retirement years with liquid assets, rather than annuities. We use data from four waves of the HRS to investigate how households spend down their retirement wealth, and, in particular, whether they appear to run down their retirement accounts too quickly. We find no evidence of excessive dissaving over the period 1998 to 2004. Indeed, the annuitized value of total wealth rose for most households over this period, suggesting that households are not running down their assets too fast, given their remaining life expectancies.

Endnote Keywords

Retirement Wealth/spending patterns/Assets/Dissaving

Endnote ID


Citation Key5684