Personal Accounts and Family Retirement

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dc.contributor.author Gustman, Alan L.
dc.contributor.author Steinmeier, Thomas L.
dc.date.accessioned 2007-04-25T15:51:47Z
dc.date.available 2007-04-25T15:51:47Z
dc.date.issued 2004-01
dc.identifier.uri http://hdl.handle.net/2027.42/50552
dc.description.abstract This paper constructs a model of retirement and saving by two earner couples. The model includes three dimensions of behavior: the joint determination of retirement and saving; heterogeneity in time preference; and the interdependence of retirement decisions of husbands and wives. Estimation is based on panel data from the Health and Retirement Study covering the period 1992 to 2000. When husbands postpone their retirement so they can retire together with their typically younger wives, the spike in retirement at age 62 is smeared to later ages. Thus retirements differ between one and two earner families. We find both an asymmetry in which husbands prefer their wife to be retired before they retire, and a clear distaste of many husbands to retiring when their wives are in poor health, while the wives are willing to stay at home with sickly husbands. We simulate a system of personal Social Security accounts based on a 10.6 percent contribution rate over the lifetime. One version allows individuals to make lump sum withdrawals at retirement instead of annuitizing. This program would increase the retirement rates of husbands at age 62 by about 15 percentage points compared to the current system. Adding a lump sum option, by itself, would increase retirements at 62 by about 6 percentage points. en
dc.description.sponsorship Social Security en
dc.format.extent 1579307 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US en
dc.publisher Michigan Retirement Research Center, University of Michigan, P.O. Box 1248, Ann Arbor, MI 48104 en
dc.relation.ispartofseries WP 2004-067 en
dc.title Personal Accounts and Family Retirement en
dc.type Working Paper en
dc.subject.hlbsecondlevel Population and Demography
dc.subject.hlbtoplevel Social Sciences
dc.contributor.affiliationother Dartmouth College en
dc.contributor.affiliationother Texas Tech University en
dc.contributor.affiliationother NBER en
dc.contributor.affiliationumcampus Ann Arbor en
dc.description.bitstreamurl http://deepblue.lib.umich.edu/bitstream/2027.42/50552/1/wp067.pdf en_US
dc.owningcollname Retirement Research Center, Michigan (MRRC)
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