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Couples' and Singles’ Savings After Retirement

Author

Listed:
  • Mariacristina De Nardi

    (University College of London, Federal Reserve Bank of Chicago, Institute for Fiscal Studies, and NBER)

  • Eric French

    (University College of London, Federal Reserve Bank of Chicago, and Institute for Fiscal Studies)

  • John Bailey Jones

    (SUNY-Albany)

Abstract

We model the saving problem of retired couples and singles facing uncertain longevity and medical expenses in presence of means-tested social insurance. Households can save to self-insure against uncertain longevity and medical expenses, and to leave bequests. Individuals in a couple can be altruistic towards their spouse and other heirs and split bequests optimally. Single people can care about leaving bequests to children and others. Using AHEAD data, we first estimate the model and we then evaluate the relative importance of the various savings motives and the risk exposure of couples’ versus singles.

Suggested Citation

  • Mariacristina De Nardi & Eric French & John Bailey Jones, 2015. "Couples' and Singles’ Savings After Retirement," Working Papers wp322, University of Michigan, Michigan Retirement Research Center.
  • Handle: RePEc:mrr:papers:wp322
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    File URL: http://mrdrc.isr.umich.edu/publications/Papers/pdf/wp322.pdf
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    References listed on IDEAS

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    Cited by:

    1. Poterba, James & Venti, Steven & Wise, David A., 2018. "Longitudinal determinants of end-of-life wealth inequality," Journal of Public Economics, Elsevier, vol. 162(C), pages 78-88.
    2. Margherita Borella & Mariacristina De Nardi & Eric French, 2018. "Who Receives Medicaid in Old Age? Rules and Reality," Fiscal Studies, John Wiley & Sons, vol. 39(1), pages 65-93, March.

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