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Longevity Risk, Subjective Survival Expectations, and Individual Saving Behavior

Listed author(s):
  • Thomas Post

    ()

    (School of Business and Economics, Maastricht University)

  • Katja Hanewald

    ()

    (School of Risk and Actuarial Studies and ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales)

Theoretical studies suggest that unexpected changes in future survival probabilities, that is, longevity risk, are important determinants of individuals' decision making about consumption, saving, allocation of assets, and retirement timing. Based on a data set that matches subjective survival expectations and savings indicators from the Survey of Health, Ageing and Retirement in Europe (SHARE) with life table data from the Human Mortality Database this study provides first empirical evidence that individuals are aware of longevity risk.

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File URL: http://www.cepar.edu.au/media/59721/wp1111_longevity_risk__subjective_survival_expectations_.pdf
File Function: First version, 2011
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Paper provided by ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales in its series Working Papers with number 201111.

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Length: 42 pages
Date of creation: Aug 2011
Handle: RePEc:asb:wpaper:201111
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