Work

Stochastic Mortality, Subjective Survival Expectations, and Individual Saving Behavior

Year: 2010

Type: preprint

Abstract: Theoretical studies suggest that unexpected changes in future mortality and survival probabilities (stochastic mortality) are important determinants of individuals’ decisions about consumption, saving, asset allocation, and retirement timing. Using data on subjective survival expectations elicited in the Survey of Health, Ageing and Retirement in Europe (SHARE) and corresponding life table data from the Human Mortality Database (HMD), we find evidence of respondents’ awareness of stochastic mortality. We also find that respondents’ saving behavior is influenced by stochastic mortality perceptions.

Source: RePEc: Research Papers in Economics

DOI: 10.18452/4268

Authors: Post, Thomas, Hanewald, Katja

Institutions: Maastricht University, Humboldt-Universität zu Berlin

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funders: European Commission, Deutsche Forschungsgemeinschaft, National Institutes of Health, National Institute on Aging