Asset Rundown After Retirement: The Importance of Rate of Return Shocks
19 Pages Posted: 9 May 2007
The authors provide evidence that households run down their assets after retirement by tracking a group of elderly households over the 1996-2004 period. They find that assets decline for these households approaching the end of the life cycle. Had there not been a run-up in asset prices due in large part to a historically remarkable rise in housing prices, assets would have declined even faster.
Keywords: asset decumulation, aging, rate of return shocks, Consumption, Saving, Wealth, Personal Income and Other Nonbusiness Taxes and Subsidies
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