Are You Sure You're Saving Enough for Retirement?
AbstractMany view the soon-to-retire Baby Boomers as woefully unprepared for their golden years, while other economists have taken a more sanguine view of American levels of saving. And if Americans are failures at saving enough for retirement, why are some retirees so happy? The seemingly simple question of "Am I saving enough for retirement?" is apparently not so simple at all. Instead, it touches on a variety of deeper issues in economics, psychology, and health policy. I use the program ESPlanner to present life-cycle retirement wealth targets for a range of incomes and situations typical of American Economic Association members. (Readers are warned that life-cycle retirement wealth targets presented in this paper may lead to feelings of financial inadequacy.)
CitationSkinner, Jonathan. 2007. "Are You Sure You're Saving Enough for Retirement?" Journal of Economic Perspectives, 21 (3): 59-80. DOI: 10.1257/jep.21.3.59
- D13 Household Production and Intrahousehold Allocation
- D14 Household Saving; Personal Finance
- D91 Intertemporal Household Choice; Life Cycle Models and Saving
- J26 Retirement; Retirement Policies