Retirement and Wealth

This article analyzes the
relationship between
retirement and wealth. Using
data from the first four waves
of the longitudinal Health and
Retirement Study—a cohort of
individuals born from 1931 to
1941—we estimate reducedform retirement and wealth
equations. Our results show
that those who retire earlier
do not necessarily save more
and that even if one’s primary
interest is in the relationship
between Social Security
policy and the decision to
retire, it is important to
incorporate saving behavior
and other key decisions into
the analysis.