Why Do Couples and Singles Save during Retirement? Household Heterogeneity and its Aggregate Implications

Mariacristina De Nardi, Eric French, John Bailey Jones and Rory McGee

No 20743, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We estimate a model of savings for retired couples and singles who face longevity and medical expense risks, and in which couples can leave bequests both when the first and last spouse dies. We show that saving motives vary by marital status, permanent income, and age. We find that most households save more for medical expenses than for bequests, but that richer households and couples, who hold most of the wealth, save more for bequests. As a result, bequest motives are a key determinant of aggregate retirement wealth.

Keywords: Bequests (search for similar items in EconPapers)
Date: 2025-10
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