%0 Report %D 2005 %T Understanding Expenditure Patterns in Retirement %A Barbara A Butrica %A Joshua H. Goldwyn %A Richard W. Johnson %K Consumption and Savings %K Income %X Understanding the consumption needs of retirees is critical to assessing the adequacy of retirement income and the possible impact of Social Security reform on the well-being of older Americans. This study uses data from the Health and Retirement Study, including a recent supplemental expenditure survey, to analyze spending patterns and consumption needs for adults ages 65 and older. Results indicate that typical older married adults spend 84 percent of after-tax household income, and nonmarried adults spend 92 percent of after-tax income. Even at older ages individuals devote a larger share of their expenditures and income to housing than any other category of goods and services, including health care. Fully 8 percent of married adults report after-tax incomes that fall short of our estimated basic-needs threshold, consisting of housing, health care, food, and clothing. By comparison, only 3 percent of married adults have incomes below the official poverty level. %B Urban Institute Research Report %I Center for Retirement Research at Boston College %C Boston %G eng %U https://www.urban.org/research/publication/understanding-expenditure-patterns-retirement %L wp_2005/CRRwp_2005-03.pdf %4 Retirement Incomes/Consumption %$ 15160 %0 Journal Article %J Gerontologist %D 2005 %T Who foregoes survivor protection in employer-sponsored pension annuities? %A Richard W. Johnson %A Cori E. Uccello %A Joshua H. Goldwyn %K Female %K Humans %K Male %K Multivariate Analysis %K Pensions %K Socioeconomic factors %K Spouses %K United States %X

PURPOSE: Retirees in traditional pension plans must generally choose between single life annuities, which provide regular payments until death, and joint and survivor annuities, which pay less each month but continue to make payments to the spouse after the death of the retired worker. This article examines the payout decision and measures the share of married retirees with pension annuities who forego survivor protection.

DESIGN AND METHODS: The analysis consists of a probit model of the pension payout decision, based on data from the 1992-2000 waves of the Health and Retirement Study.

RESULTS: More than one quarter (28%) of married men and two thirds of married women receiving employer-sponsored retirement annuities declined survivor protection. Men with small pensions and limited household wealth, men in better health than their spouses, and men whose spouses have pension coverage from their own employers are more likely than other men to reject survivor protection.

IMPLICATIONS: Most workers appear to make payout decisions by rationally balancing the costs and benefits of each type of annuity, suggesting that existing measures to encourage joint and survivor annuities are adequate. However, the growth in 401(k) plans, which are generally not covered by existing laws protecting spousal pension rights, may leave widows vulnerable.

%B Gerontologist %I 45 %V 45 %P 26-35 %8 2005 Feb %G eng %N 1 %1 http://www.ncbi.nlm.nih.gov/pubmed/15695415?dopt=Abstract %4 Annuities/Pensions/Survivors/Female/Multivariate Analysis/Socioeconomic Factors/Spouses/United States %$ 14360 %R 10.1093/geront/45.1.26 %0 Report %D 2003 %T Employment, Social Security, and Future Retirement Outcomes for Single Mothers %A Richard W. Johnson %A Melissa Favreault %A Joshua H. Goldwyn %K Expectations %K Social Security %K Women and Minorities %I Chestnut Hill, MA, Center for Retirement Research at Boston College %G eng %4 Social Security/Women, Working/Retirement Expectations %$ 13352