Effects of pensions on savings: analysis with data from the health and retirement study

Gustman, Alan L.; Steinmeier, Thomas L.

doi:10.1016/s0167-2231(99)00030-5

Cited by 168 publications

(114 citation statements)

References 21 publications

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“…Our results also confirm a widespread lack of retirement planning, even among the educated (Yakobosky and Dickempers 1997; Ameriks, Caplin and Leahy 2004). It is also consistent with work by Mitchell (1988) and Gustman and Steinmeier (1999) who found that workers seem to know very little about their Social Security and pension benefits, two of the most important components of retirement wealth. In fact, close to half of workers in the HRS analyzed by Gustman and Steinmeier (2004) could not report their type of pension plan, and an even larger portion was ignorant of future Social Security benefits.…”

Section: Findings For Retirement Planningsupporting

confidence: 89%

Financial Literacy and Planning: Implications for Retirement Wellbeing

2011

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Relatively little is known about why people fail to plan for retirement and whether planning and information costs might affect retirement saving patterns. This paper reports on a purpose-built survey module on planning and financial literacy for the Health and Retirement Study which measures how people make financial plans, collect the information needed to make these plans, and implement the plans. We show that financial illiteracy is widespread among older Americans, particularly women, minorities, and the least educated. We also find that the financially savvy are more likely to plan and to succeed in their planning, and they rely on formal methods such as retirement calculators, retirement seminars, and financial experts, instead of family/relatives or co-workers. These results have implications for targeted financial education efforts.

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Section: Findings For Retirement Planningsupporting

confidence: 89%

Financial Literacy and Planning: Implications for Retirement Wellbeing

2011

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“…Notwithstanding these caveats, our results are similar to those from US studies by Gustman and Steinmeier (1999) and Venti and Wise (2000) who follow a similar approach to that which we use here: that is, we find relatively constant ratios of wealth in retirement to lifetime earnings across the lifetime earnings distribution. At the same time, we unveil significant dispersion of retirement resources conditional on lifetime earnings.…”

Section: Introductionsupporting

confidence: 88%

“…Using administrative data on earnings histories linked with the Health and Retirement Study (HRS), researchers have analysed how wealth in retirement is associated with levels of lifetime earnings (Gustman andSteinmeier 1999, Venti andWise 2000). They found that ratios of retirement wealth to lifetime earnings were roughly constant across the lifetime income distribution, thus reinforcing Friedman's view.…”

Section: Introductionmentioning

confidence: 99%

How much do lifetime earnings explain retirement resources?

Bozio¹,

Emmerson²,

Tetlow³

2011

Working Paper Series

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We use a unique dataset, containing individual survey data from the English Longitudinal Study of Ageing linked to administrative data on earnings histories from administrative records, to construct measures of lifetime earnings and examine how these relate to financial resources in retirement. Retirement income and wealth at retirement is, as expected, positively correlated with lifetime earnings but there is also substantial dispersion in retirement income and retirement wealth among people with similar lifetime earnings. For example, we find that those with greater numerical ability and higher education tend to have greater retirement resources even after controlling for differences in lifetime earnings. The retirement resources of single women are far less well explained by their own lifetime earnings than those of couples or single men. We hypothesise that, as the vast majority of single women in the age group considered had previously been married and are now widowed or divorced, this reflects the fact that we do not observe the lifetime earnings of their former spouses.

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“…The AIME is constructed as follows. Let W t+j denote the national average wage index for year t + j, and let W t+R denote the national average wage index for the retirement year, t + R. 3 The worker's indexed earnings W indexed t+j are computed as follows:…”

Section: Social Security As a Risky Financial Assetmentioning

confidence: 99%

Social Security as a Financial Asset: Gender-Specific Risks and Returns

Baxter

2001

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Effects of pensions on savings: analysis with data from the health and retirement study

Cited by 168 publications

References 21 publications

Financial Literacy and Planning: Implications for Retirement Wellbeing

Financial Literacy and Planning: Implications for Retirement Wellbeing

How much do lifetime earnings explain retirement resources?

Social Security as a Financial Asset: Gender-Specific Risks and Returns

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