What is an Adequate Standard of Living during Retirement?

Johannes Binswanger () and Daniel Schunk

No 2893, CESifo Working Paper Series from CESifo

Abstract: Many economists and policy-makers argue that households do not save enough to maintain an adequate standard of living during retirement. However, there is no consensus on the answer to the underlying question about what this standard should be, despite the fact that it is crucial for the design of saving incentives and pension systems. We address this question with a randomized survey design, individually tailored to each respondent’s financial situation, and conducted both in the U.S. and the Netherlands. Key findings include the following. Adequate levels of retirement spending exceed 80 percent of working life spending for a majority of respondents. Minimum acceptable replacement rates depend strongly on income. Households in the Netherlands are much more risk averse than U.S. households.

Keywords: : life cycle preferences; pension reform; replacement rates; retirement saving; cross-country survey studies (search for similar items in EconPapers)
JEL-codes: D91 H55 (search for similar items in EconPapers)
Date: 2009
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https://www.cesifo.org/DocDL/cesifo1_wp2893.pdf (application/pdf)

Related works:
Journal Article: What is an adequate standard of living during Retirement?* (2012)
Working Paper: What is an adequate standard of living during retirement? (2008)
Working Paper: What is an adequate standard of living during retirement? (2008)
Working Paper: What is an Adequate Standard of Living During Retirement? (2008)
Working Paper: What is an Adequate Standard of Living During Retirement? (2008)
Working Paper: What is an Adequate Standard of Living during Retirement? (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_2893

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