The effects of health, family, and altruism on retirement savings

Abstract

Using data from the Panel Study of Income Dynamics, this paper broadens the analysis of retire- ment savings by examining the effects of health, children, altruism, and family of origin attributes on the decision of whether to save for retirement and on how much retirement savings are accumu- lated. The presence of children in the household generally reduces the probability of saving for retirement. Poor personal or parental health diminishes retirement savings outcomes. Altruistic behavior generally presents as complementary to retirement savings, and the evidence suggests chil- dren of mothers who saved for retirement are more likely to do the same.