Maurer, Raimond
[Verfasser:in]
;
Mitchell, Olivia S.
[Sonstige Person, Familie und Körperschaft];
Rogalla, Ralph
[Sonstige Person, Familie und Körperschaft]National Bureau of Economic Research
The Effect of Uncertain Labor Income and Social Security on Life-cycle Portfolios
Erschienen:
Cambridge, Mass: National Bureau of Economic Research, January 2010
Erschienen in:NBER working paper series ; no. w15682
Umfang:
1 Online-Ressource
Sprache:
Englisch
DOI:
10.3386/w15682
Identifikator:
Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
Anmerkungen:
Mode of access: World Wide Web
System requirements: Adobe [Acrobat] Reader required for PDF files
Beschreibung:
This paper examines how labor income volatility and social security benefits can influence lifecycle household portfolios. We examine how much the individual optimally saves and where, taking into account liquid financial wealth and annuities, and stocks as well as bonds. Higher labor income uncertainty and lower old-age benefits boost demand for stable income in retirement, but also when young. In addition, a declining equity glide path with age is appropriate for the worker with low income uncertainty; for the high income risk worker, equity exposure rises until retirement. We also evaluate how differences in social security benefits can influence retirement risk management