TY - CHAP T1 - Institutions and Saving for Retirement: Comparing the United States, Italy, and the Netherlands T2 - Analyses in the Economics of Aging Y1 - 2005 A1 - Arie Kapteyn A1 - Panis, Constantijn ED - David A Wise KW - Consumption and Savings KW - Methodology AB - This paper analyzes retirement saving and portfolio choice in the United States, Italy, and the Netherlands. In addition to relying on public retirement provisions, households prepare for retirement through tax-sheltered and after-tax savings. They may invest these funds in a wide variety of assets, including housing, stocks, bonds, savings accounts, and so on. These asset types differ in their risk, return, and liquidity characteristics as well as in their fiscal treatment. Economic theory postulates that housholds allocate their portfolios according to their risk aversion, time horizon, uncertain out-of-pocket medical expenditures, income risk, informal (family) risk-sharing arrangements, and more. While the literature has tested various parts of the theory, both testing and quantification of the theory are hampered by the fact that some of the major variables do not exhibit sufficient variation within a country to establish their relative importance for portfolio choice, or, more generally, for retirement saving and investment. This paper partially fills that gap by exploring three countries with widely varying institutional arrangements for retirement income. JF - Analyses in the Economics of Aging PB - University of Chicago Press CY - Chicago UR - https://www.nber.org/chapters/c10364 N1 - ProCite field 6 : In ProCite field 8 : ed. U4 - Cross Cultural Comparison/Retirement Saving ER - TY - RPRT T1 - Annuities and Retirement Satisfaction Y1 - 2003 A1 - Panis, Constantijn KW - Expectations KW - Net Worth and Assets KW - Retirement Planning and Satisfaction KW - Social Security AB - This paper analyzes pre-retirement expectations and post-retirement satisfaction, in particular their association with the degree to which retirees financial resources are in the form of annuities. Using the 1992-2000 Health and Retirement Study (HRS), we find that most retirees are very satisfied with their overall situation, but the degree of satisfaction varies substantially with retirees characteristics. In particular, people in better health and with more financial resources tend to be more satisfied. Holding constant the present value of retirement resources and other factors, we find that retirees who can finance more of their consumption in retirement from pension annuities (vs. Social Security benefits and accumulated savings) are more satisfied. Retirees with lifelong annuities also tend to maintain their level of satisfaction during retirement, whereas those without tend to become less satisfied over time. We find the very same patterns with alternative depression-related measures of well-being in retirement. The findings have important implications for the well-being of future American retirees, who are increasingly reliant on DC pension plans rather than traditional DB. JF - RAND Unrestricted Draft PB - RAND Corporation CY - Santa Monica, CA UR - https://www.rand.org/pubs/drafts/DRU3021.html U4 - Retirement Expectations/Retirement Wealth/Satisfaction ER - TY - RPRT T1 - The Effects of Changing Social Security Administation's Early Entitlement Age and the Normal Retirement Age Y1 - 2002 A1 - Panis, Constantijn A1 - Michael D Hurd A1 - Loughran, David A1 - Julie M Zissimopoulos A1 - Steven Haider A1 - Patricia A St Clair KW - Methodology KW - Retirement Planning and Satisfaction KW - Test AB - The Old-Age and Survivors Insurance (OASI) program is projected to be unable to meet its obligations by approximately the year 2041. Many proposals that aim to restore solvency include provisions to accelerate the already legislated increase of the normal retirement age (NRA) or to increase it beyond the current target of 67 years; some proposals also suggest raising the early entitlement age (EEA) beyond 62 years. This document sheds light on the implications of EEA and/or NRA increases on the solvency of the OASI and DI programs. It does not discuss private accounts. The report starts with a characterization of workers who claim benefits at age 62 and a discussion of retirement planning. We then estimate formal models of retirement and DI application and simulate the financial consequences of EEA and/or NRA increases and other policy proposals. We conclude with an assessment of likely responses of employers to changes in Social Security policy. Most analyses in this report are based on the Health and Retirement Study (HRS), a survey of individuals in their 50s and 60s with very extensive information about work, financial resources including Social security and private pensions, and health. JF - Social Security Administration: Labor & Population Program PB - Washington, DC, RAND Labor and Population Program; Prepared for the Social Security Administration UR - https://www.ssa.gov/policy/docs/contractreports/agereport.pdf N1 - RDA 2000-010 U4 - Retirement Behavior/Social Security Research ER - TY - RPRT T1 - The Size and Composition of Wealth Holdings in the United States, Italy, and the Netherlands Y1 - 2002 A1 - Arie Kapteyn A1 - Panis, Constantijn KW - Methodology KW - Net Worth and Assets AB - This report analyzes retirement-saving behavior and portfolio choice in the United States, Italy, and the Netherlands. The authors test hypotheses on the implications of institutional differences for wealth accumulation and portfolio composition. JF - RAND Unrestricted Draft PB - RAND Corp. CY - Santa Monica, CA UR - https://www.rand.org/pubs/drafts/DRU3002.html U4 - Wealth/Cross Cultural Comparison ER - TY - RPRT T1 - Workers Who Take Early Social Security Retirement Benefits Y1 - 2002 A1 - Julie M Zissimopoulos A1 - Panis, Constantijn A1 - Michael D Hurd KW - Retirement Planning and Satisfaction KW - Social Security AB - The objectives of this analysis are to shed light on the differences between workers who take early Social Security retirement benefits and those that postpone claiming, and to identify the types of individuals that would be particularly vulnerable to an increase in the Early Entitlement Age (EEA) above its current level of age 62. Generally speaking, we find workers who accept early retirement benefits are less likely to be college educated, less likely to be in management positions or to be professionals and more likely to have left the labor force before age 62. There are no large differences in financial wealth between Takers and Postponers, except for in pension wealth. Takers are much less likely to be covered by a pension plan and have lower pension wealth than Postponers. Moreover, while quite healthy on average, Takers are more likely to be in poorer health than workers who postpone benefits. This difference is particularly important for understanding the impact of raising the EEA. Individuals with a limited ability to continue working past age 62 due to health problems may experience substantial welfare losses in case of an increase in the EEA. Among a particularly vulnerable group of Takers, those in poor health and without pension entitlement, we find that more than half have a physically demanding job. These workers are particularly likely to apply for DI benefits in case of an increase of the EEA, which would add to rather than reduce total Social Security outlays. PB - Washington, DC, RAND Labor and Population Program; Prepared for the Social Security Administration N1 - RDA 2000-010 U4 - Retirement Planning/Early Retirement/Social Security ER - TY - RPRT T1 - Retirement Planning Y1 - 2001 A1 - Loughran, David A1 - Panis, Constantijn KW - Net Worth and Assets KW - Retirement Planning and Satisfaction AB - This report is concerned with two issues. First, it describes when individuals near retirement age plan to retire, and documents how their characteristics differ by planned retirement age. Second, it evaluates how accurately these individuals predict the timing of their retirement, and documents how good planners differ from poor planners. Consistent with earlier studies of retirement expectations, we demonstrate that retirement expectations in the HRS are closely correlated with many of the standard determinants of actual retirement. Broadly speaking, workers who expect to retire before age 62 tend to be wealthy and have generous pensions. Private pension incentives play an important role in determining retirement expectations. Individuals with private pensions are disproportionately represented among individuals expecting to retire early and, conditional on having a private pension, access to early pension benefits greatly increases the odds of planning an early retirement. Private pension wealth declines considerably with expected retirement age further suggesting that individuals are responsive to private pension plan incentives. There is little correlation between Social Security wealth and expected retirement age. There is strong evidence that spouses coordinate their retirement plans. The simple correlation between the expected retirement ages of husbands and wives is 0.43. Perhaps somewhat surprisingly, though, only 14 percent of couples expect the husband and wife to retire in the same year. In 50 percent of cases, husbands report that they expect to retire after their wives retire. PB - Washington, DC, RAND Labor and Population Program; Prepared for the Social Security Administration N1 - RDA 2000-010 Panis U4 - Pension Wealth/Retirement Planning ER - TY - RPRT T1 - An Analysis of the Choice to Cash-Out, Maintain, or Annuitize Pension Rights at Job Change or Retirement Y1 - 1998 A1 - Michael D Hurd A1 - Lee A. Lillard A1 - Panis, Constantijn KW - Pensions KW - Retirement Planning and Satisfaction PB - RAND UR - https://www.rand.org/content/dam/rand/pubs/drafts/2008/DRU1979.pdf U4 - Pension Plans/Retirement Planning ER -