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.

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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: The Journal of Individual Financial Management, 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.

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