TY - RPRT T1 - The Effect of Subjective Survival Probabilities on Retirement and Wealth in the United States Y1 - 2007 A1 - David E Bloom A1 - Canning, David A1 - Moore, Michael A1 - Song, Younghwan KW - Expectations KW - Net Worth and Assets AB - We explore the proposition that expected longevity affects retirement decisions and accumulated wealth using micro data drawn from the Health and Retirement Study for the United States. We use data on a person s subjective probability of survival to age 75 as a proxy for their prospective lifespan. In order to control for the presence of measurement error and focal points in responses, as well as reverse causality, we instrument subjective survival probabilities using information on current age, or age at death, of the respondent s parents. Our estimates indicate that increased subjective probabilities of survival result in increased household wealth among couples, with no effect on the length of the working life. These findings are consistent with the view that retirement decisions are driven by institutional constraints and incentives and that a longer expected lifespan leads to increased wealth accumulation. PB - University of St. Gallen, World Demographic Association U4 - Subjective Probabilities of Survival/Wealth Accumulation ER - TY - RPRT T1 - The Effect of Subjective Survival Probabilities on Retirement and Wealth in the United States Y1 - 2006 A1 - David E Bloom A1 - Canning, David A1 - Moore, Michael A1 - Song, Younghwan KW - Expectations KW - Net Worth and Assets KW - Retirement Planning and Satisfaction AB - We explore the proposition that expected longevity affects retirement decisions and accumulated wealth using micro data drawn from the Health and Retirement Study for the United States. We use data on a person's subjective probability of survival to age 75 as a proxy for their prospective lifespan. In order to control for the presence of measurement error and focal points in responses, as well as reverse causality, we instrument subjective survival probabilities using information on current age, or age at death, of the respondent's parents. Our estimates indicate that increased subjective probabilities of survival result in increased household wealth among couples, with no effect on the length of the working life. These findings are consistent with the view that retirement decisions are driven by institutional constraints and incentives and that a longer expected lifespan leads to increased wealth accumulation. JF - NBER Working Paper PB - National Bureau of Economic Research CY - Washington, D.C. U4 - Subjective Probabilities of Survival/Wealth Accumulation/Retirement Planning ER -