How family status and social security claiming options shape optimal life cycle portfolios
Andreas Hubener,
Raimond Maurer and
Olivia Mitchell
No 2013/07, CFS Working Paper Series from Center for Financial Studies (CFS)
Abstract:
Household decisions are profoundly shaped by a complex set of financial options due to Social Security rules determining retirement, spousal, and survivor benefits, along with benefit adjustments that vary with the age at which these are claimed. These rules influence optimal household asset allocation, insurance, and work decisions, given life cycle demographic shocks such as marriage, divorce, and children. Our model generates a wealth profile and a low and stable equity fraction consistent with empirical evidence. We also confirm predictions that wives will claim retirement benefits earlier than husbands, while life insurance is mainly purchased by younger men. Our policy simulations imply that eliminating survivor benefits would sharply reduce claiming differences by sex while dramatically increasing men's life insurance purchases.
Date: 2013
New Economics Papers: this item is included in nep-age, nep-dge and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://www.econstor.eu/bitstream/10419/87684/1/77155995X.pdf (application/pdf)
Related works:
Journal Article: How Family Status and Social Security Claiming Options Shape Optimal Life Cycle Portfolios (2016) 
Working Paper: How Family Status and Social Security Claiming Options Shape Optimal Life Cycle Portfolios (2013) 
Working Paper: How Family Status and Social Security Claiming Options Shape Optimal Life Cycle Portfolios (2013) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:201307
Access Statistics for this paper
More papers in CFS Working Paper Series from Center for Financial Studies (CFS) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().