Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/119573
Authors: 
Crawford, Rowena
O'Dea, Cormac
Year of Publication: 
2014
Series/Report no.: 
IFS Working Papers W14/22
Abstract: 
Using a model where households can save in either a safe asset or in an illiquid, tax-advantaged pension, we assess the extent to which those who recently reached the state pension age in the UK have saved optimally for retirement. The policy environment specified closely matches that prevailing in the UK. Using the model and administrative data linked with survey data from the English Longitudinal Study of Ageing, an optimal level of wealth is calculated for each household. This is compared to the levels of wealth observed in the data. Our results show that, for those born in the 1940s, the vast majority of households have wealth levels far greater than necessary to maintain their living standards into and through retirement.
Subjects: 
Lifecycle model
Wealth
Dynamic Programming
Savings
JEL: 
D31
D91
E21
D12
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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