How Family Status and Social Security Claiming Options Shape Optimal Life Cycle Portfolios

• 成果类型: Article
• 署名作者: Hubener, Andreas; Maurer, Raimond; Mitchell, Olivia S.
• 署名单位: Goethe University Frankfurt; University of Pennsylvania; National Bureau of Economic Research
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhv070
• 发表日期: 2016
• 页码: 937
• 关键词: RETIREMENT-SAVINGS; asset allocation; stock-market; CHOICE; consumption; insurance; Annuities; GROWTH

摘要

We show how optimal household decisions regarding work, retirement, saving, portfolio allocations, and life insurance are shaped by the complex financial options embedded in U.S. Social Security rules and uncertain family transitions. Our life cycle model predicts sharp consumption drops on retirement, an age-62 peak in claiming rates, and earlier claiming by wives versus husbands and single women. Moreover, life insurance is mainly purchased on men's lives. Our model, which takes Social Security rules seriously, generates wealth and retirement outcomes that are more consistent with the data, in contrast to earlier and less realistic models.