How family status and social security claiming options shape optimal life cycle portfolios : [Version October 20, 2013]

  • Household decisions are profoundly shaped by a complex set of financial options due to Social Security rules determining retirement, spousal, and survivor benefits, along with benefit adjustments that vary with the age at which these are claimed. These rules influence optimal household asset allocation, insurance, and work decisions, given life cycle demographic shocks such as marriage, divorce, and children. Our model generates a wealth profile and a low and stable equity fraction consistent with empirical evidence. We also confirm predictions that wives will claim retirement benefits earlier than husbands, while life insurance is mainly purchased by younger men. Our policy simulations imply that eliminating survivor benefits would sharply reduce claiming differences by sex while dramatically increasing men’s life insurance purchases.

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Metadaten
Author:Andreas Hubener, Raimond MaurerORCiDGND, Olivia S. MitchellORCiDGND
URN:urn:nbn:de:hebis:30:3-324844
Parent Title (German):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2013,07
Series (Serial Number):CFS working paper series (2013, 07)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Language:English
Year of Completion:2013
Year of first Publication:2013
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2013/12/13
Issue:Version October 20, 2013
Page Number:51
HeBIS-PPN:34970497X
Institutes:Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License LogoDeutsches Urheberrecht