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Planning for Retirement? The Importance of Time Preferences

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Listed:
  • Robert L. Clark
  • Robert G. Hammond
  • Christelle Khalaf
  • Melinda Sandler Morrill

Abstract

Ensuring retirement income security is a priority for individuals, employers, and policymakers. Using merged administrative and survey data for public sector workers in North Carolina, we explore how workers’ characteristics and preferences are associated with planning and saving for retirement. We then assess the “quality” of a retirement plan and whether retirement behavior is consistent with these plans. The findings indicate that the way that individuals discount future consumption is associated with the extent of their retirement planning and preparedness. We find that individuals who engage in retirement planning are better prepared to meet their retirement goals upon leaving their career jobs.

Suggested Citation

  • Robert L. Clark & Robert G. Hammond & Christelle Khalaf & Melinda Sandler Morrill, 2017. "Planning for Retirement? The Importance of Time Preferences," NBER Working Papers 23501, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23501
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    References listed on IDEAS

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    Cited by:

    1. Robert L. Clark & Robert G. Hammond & Siyan Liu, 2019. "Work after Retirement: Worklife Transitions of Career Public Employees," NBER Chapters, in: Incentives and Limitations of Employment Policies on Retirement Transitions: Comparisons of Public and Private Sectors, National Bureau of Economic Research, Inc.
    2. Nolan, Anne & Whelan, Adele & McGuinness, Seamus & Maître, Bertrand, 2019. "Gender, pensions and income in retirement," Research Series, Economic and Social Research Institute (ESRI), number RS87, January.
    3. Robert L. Clark & Robert G. Hammond & Melinda S. Morrill & Christelle Khalaf, 2019. "Informing Retirement Savings Decisions: A Field Experiment On Supplemental Plans," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 188-205, January.
    4. Benjamin Volland, 2018. "Après nous le déluge? Perceived distance of climate change impacts and pro-environmental behaviour," IRENE Working Papers 18-05, IRENE Institute of Economic Research.

    More about this item

    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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