What is an Adequate Standard of Living During Retirement?

J. Binswanger, D. Schunk

Research output: Working paperDiscussion paperOther research output

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Abstract

Many economists and policy-makers argue that households do not save enough to maintain an adequate standard of living during retirement. However, there is no consensus on the answer to the underlying question what this standard should be, despite the fact that it is crucial for the design of saving incentives and pension reforms. We address this question with a survey, individually tailored to each respondent’s financial situation, conducted both in the U.S. and the Netherlands. Key findings are that adequate levels of retirement spending exceed 70 percent of working life spending, and minimum acceptable replacement rates depend strongly on income.
Original languageEnglish
Place of PublicationTilburg
PublisherMicroeconomics
Number of pages34
Volume2008-82
Publication statusPublished - 2008

Publication series

NameCentER Discussion Paper
Volume2008-82

Fingerprint

Standard of living
Retirement
Politicians
Pension reform
Income
Household
Incentives
Replacement rate
The Netherlands
Economists

Keywords

  • Life cycle preferences
  • pension reform
  • replacement rates
  • retirement saving

Cite this

Binswanger, J., & Schunk, D. (2008). What is an Adequate Standard of Living During Retirement? (CentER Discussion Paper; Vol. 2008-82). Tilburg: Microeconomics.
Binswanger, J. ; Schunk, D. / What is an Adequate Standard of Living During Retirement?. Tilburg : Microeconomics, 2008. (CentER Discussion Paper).
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Binswanger, J & Schunk, D 2008 'What is an Adequate Standard of Living During Retirement?' CentER Discussion Paper, vol. 2008-82, Microeconomics, Tilburg.

What is an Adequate Standard of Living During Retirement? / Binswanger, J.; Schunk, D.

Tilburg : Microeconomics, 2008. (CentER Discussion Paper; Vol. 2008-82).

Research output: Working paperDiscussion paperOther research output

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AB - Many economists and policy-makers argue that households do not save enough to maintain an adequate standard of living during retirement. However, there is no consensus on the answer to the underlying question what this standard should be, despite the fact that it is crucial for the design of saving incentives and pension reforms. We address this question with a survey, individually tailored to each respondent’s financial situation, conducted both in the U.S. and the Netherlands. Key findings are that adequate levels of retirement spending exceed 70 percent of working life spending, and minimum acceptable replacement rates depend strongly on income.

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Binswanger J, Schunk D. What is an Adequate Standard of Living During Retirement? Tilburg: Microeconomics. 2008. (CentER Discussion Paper).