Beliefs and actions

expectations and savings decisions by older Americans

Authors

  • Harold W. Elder Department of Economics, Finance & Legal Studies, University of Alabama, Box 870224, Tuscaloosa, AL 35487, USA
  • Patricia M. Rudolph Department of Economics, Finance & Legal Studies, University of Alabama, Box 870224, Tuscaloosa, AL 35487, USA

DOI:

https://doi.org/10.1016/S1057-0810(00)00054-8

Keywords:

Pensions, Consumption, Savings

Abstract

To understand the interaction of savings behavior, pension fund participation and expectations of retirement well being, we ask two questions. Are expected pension benefits a substitute for accumulated savings in replacing preretirement income? Are individuals’ expectations concerning their retirement standard of living realistic based on their accumulated savings and pension plan participation? First-wave data from the Health and Retirement Study (HRS) are analyzed using a probit regression. The results are consistent with the idea that pension benefits are substitutes for saving and that accumulated savings have a significant impact on the expected standard of living but pension plan participation does not. © 2000 Elsevier Science Inc. All rights reserved.

Downloads

Published

2000-03-30

How to Cite

Elder, H. W., & Rudolph, P. M. (2000). Beliefs and actions: expectations and savings decisions by older Americans. Financial Services Review, 9(1), 33–45. https://doi.org/10.1016/S1057-0810(00)00054-8

Issue

Vol. 9 No. 1 (2000): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2000 JAI Press Inc.

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Author(s) retain copyright and grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows to share the work with an acknowledgment of the work's authorship and initial publication in this Journal.

This license allows the author to remix, tweak, and build upon the original work non-commercially. The new work(s) must be non-commercial and acknowledge the original work.