@article {9093, title = {Time discounting and economic decision-making in the older population}, journal = {The Journal of the Economics of Ageing}, volume = {14}, year = {2019}, abstract = {This paper examines heterogeneity in time discounting among a representative sample of elderly Americans, as well as its role in explaining key economic behaviors at older ages. We show how older Americans evaluate simple (hypothetical) inter-temporal choices in which payments today are compared with payments in the future. Using the indicators derived from this measure, we then demonstrate that differences in discounting patterns are associated with characteristics of particular importance in elderly populations. For example, cognitive deficits are associated with greater impatience, whereas bequest motives are associated with less impatience. We then relate our discounting measure to key economic outcomes and find that impatience is associated with lower wealth, fewer investments in health, and less planning for end of life care.}, keywords = {Decision making, Retirement Planning and Satisfaction, Self-control}, issn = {2212828X}, doi = {10.1016/j.jeoa.2017.05.001}, url = {http://www.sciencedirect.com/science/article/pii/S2212828X16300457}, author = {Huffman, David and Maurer, Raimond and Olivia S. Mitchell} } @article {8561, title = {How Family Status and Social Security Claiming Options Shape Optimal Life Cycle Portfolios}, journal = {Review of Financial Studies}, volume = {29}, year = {2016}, month = {Jul-04-2016}, pages = {937 - 978}, abstract = {We show how optimal household decisions regarding work, retirement, saving, portfolio allocations, and life insurance are shaped by the complex financial options embedded in U.S. Social Security rules and uncertain family transitions. Our life cycle model predicts sharp consumption drops on retirement, an age-62 peak in claiming rates, and earlier claiming by wives versus husbands and single women. Moreover, life insurance is mainly purchased on men{\textquoteright}s lives. Our model, which takes Social Security rules seriously, generates wealth and retirement outcomes that are more consistent with the data, in contrast to earlier and less realistic models}, keywords = {Gender Differences, Older Adults, Retirement Planning and Satisfaction, Social Security}, issn = {0893-9454}, doi = {10.1093/rfs/hhv070}, url = {http://rfs.oxfordjournals.org/lookup/doi/10.1093/rfs/hhv070}, author = {Hubener, Andreas and Maurer, Raimond and Olivia S. Mitchell} } @article {8842, title = {Time discounting and economic decision-making among the elderly}, number = {Working Paper No. 22438}, year = {2016}, month = {07/2016}, pages = {1-40}, institution = {National Bureau of Economic Research}, address = {Cambridge, MA}, abstract = {This paper evaluates the extent of heterogeneity in time discounting among elderly Americans, as well as its role in explaining older peoples{\textquoteright} key behaviors. We first show how older Americans evaluate simple (hypothetical) intertemporal choices in which payments now are compared with payments in the future. This adds to the literature on time horizon experiments by focusing on a nationally representative sample of persons age 70+. Using the indicators derived from this experiment, we show how differences in discounting patterns are associated with characteristics of particular importance in elderly populations, such as serious health and mental conditions. We then relate our discounting measure to key outcome variables including wealth, the timing of retirement, investments in health, and decisions about end of life care.}, keywords = {Decision making, Health Conditions and Status, Older Adults}, doi = {10.3386/w22438}, url = {http://www.nber.org/papers/w22438.pdf}, author = {Huffman, David and Maurer, Raimond and Olivia S. Mitchell} } @article {7976, title = {Optimal Portfolio Choice with Annuities and Life Insurance for Retired Couples}, journal = {Review of Finance}, volume = {18}, year = {2014}, note = {Times Cited: 0}, pages = {147-188}, publisher = {18}, abstract = {Using a portfolio choice model, we derive the optimal demand for stocks, bonds, annuities, and term life insurance for a retired couple with uncertainty in both lifetimes. We show that the optimal portfolio is heavily weighted with joint annuities and that life insurance is purchased mainly to protect a surviving spouse from loss of annuitized income rather than for bequest. Consistent with these predictions, empirical analyses on Health and Retirement Study data indicate that life insurance holdings are related to the degree of asymmetry in the couple{\textquoteright}s annuitized income distribution.}, keywords = {Adult children, Insurance, Net Worth and Assets}, doi = {10.1093/rof/rfs046}, author = {Hubener, Andreas and Maurer, Raimond and Rogalla, Ralph} }