http://hdl.handle.net/2027.42/49331 Search the Channel search http://deepblue.lib.umich.edu/simple-search http://hdl.handle.net/2027.42/60326 Title: Asset Allocation and Location over the Life Cycle with Survival-Contingent Payouts <br/> <br/>Authors: Horneff, Wolfram; Maurer, Raimond; Mitchell, Olivia; Stamos, Michael <br/> <br/>Abstract: This paper shows how lifelong survival-contingent payouts can enhance investor wellbeing in the context of a portfolio choice model which integrates uninsurable labor income and asymmetric mortality expectations. Our model generates optimal asset location patterns indicating how much to hold in liquid versus illiquid survival-contingent payouts over the lifetime, and also asset allocation paths, showing how to invest in stocks versus bonds. We confirm that the investor will gradually move money out of her liquid saving into survivalcontingent assets to retirement and beyond, thereby enhancing her welfare by as much as 50 percent. The results are also robust to the introduction of uninsurable consumption shocks in housing expenses, income flows during the worklife and retirement, sudden changes in health status, and medical expenses. http://hdl.handle.net/2027.42/60325 Title: The Efficiency of Pension Plan Investment Menus: Investment Choices in Defined Contribution Pension Plans <br/> <br/>Authors: Tang, Ning; Mitchell, Olivia <br/> <br/>Abstract: Few previous studies have explored whether defined contribution retirement saving plans offer sufficiently diversified investment menus, though it is likely that these menus significantly shape workers’ accumulations of retirement wealth. This paper assesses the efficiency and performance of 401(k) investment options offered by a large group of US employers. We show that most plans are efficient compared to market benchmark indexes. Three performance measures underscore the fact that these plans tend to offer a sensible investment menu, when measured in terms of the menus’ mean-variance efficiency, diversification, and participant utility. The key factor contributing to plan efficiency and performance has to do with the types of funds offered, rather than the total number of investment options provided. http://hdl.handle.net/2027.42/60324 Title: Forecasting Labor Force Participation and Economic Resources of the Early Baby Boomers <br/> <br/>Authors: Michaud, Pierre-Carl; Rohwedder, Susann <br/> <br/>Abstract: This paper forecasts the retirement patterns and resources of the Early Baby Boomers by estimating forward-looking dynamic models of labor force participation, wealth accumulation and pension and Social Security benefit claiming for older workers using seven waves of HRSdata. The two most important innovations of our proposed approach are the use of alternative measures of pension entitlements and the associated incentives, and accounting for subjective expectations about future work. Our main findings are that the Early Baby Boomers will work longer and claim Social Security later. http://hdl.handle.net/2027.42/60323 Title: Adequacy of Economic Resources in Retirement and Returns-to-scale in Consumption <br/> <br/>Authors: Hurd, Michael; Rohwedder, Susann <br/> <br/>Abstract: Most assessments of the adequacy of retirement resources are expressed as a comparison of preretirement income to immediate post-retirement income. Yet, among couples a substantial fraction of retirement years is eventually spent by the surviving spouse living alone. To the extent that singles need less than couples to maintain the same standard of living, assessments of the adequacy of economic resources that make no adjustment for widowing will systematically misstate economic preparation. We estimate returns-to-scale parameters in spending by older households, using data from the Consumption and Activities Mail Survey and apply these to assessments of adequacy of retirement resources.