Household financial planning strategies for managing longevity risk
| dc.contributor.author | Bajtelsmit, Vickie L., author | |
| dc.contributor.author | Wang, Tianyang, author | |
| dc.contributor.author | Financial Planning Review, publisher | |
| dc.date.accessioned | 2020-05-12T16:29:27Z | |
| dc.date.available | 2020-05-12T16:29:27Z | |
| dc.date.issued | 2018-09-19 | |
| dc.description | Includes bibliographical references (pages 24-25). | |
| dc.description | Published as: Financial Planning Review, vol. 1, no. 1-2, September 2018, e1007, https://doi.org/10.1002/cfp2.1007. | |
| dc.description.abstract | This study examines how longevity risk, in conjunction with other postretirement risks, impacts retirement consumption decisions and retirement wealth needs. We develop a theoretical model that directly examines the relationship between longevity risk and consumption/savings, and empirically test these theoretical implications by simulating retirement outcomes for representative households, including longevity, inflation, investment, health, and longāterm care risks. Our study shows that the top third of households by longevity need approximately 20% more retirement wealth than those households who live only an average life span. Investigations of various risk mitigation strategies suggest that combination strategies, particularly those that include delayed retirement, can significantly reduce the retirement wealth target. This research provides valuable new insights on household financial planning strategies for managing longevity risk. | |
| dc.format.medium | born digital | |
| dc.format.medium | articles | |
| dc.identifier.bibliographicCitation | Bajtelsmit, VL, Wang, T. Household financial planning strategies for managing longevity risk. Financial Planning Review. 2018; 1:e1007. https://doi.org/10.1002/cfp2.1007 | |
| dc.identifier.uri | https://hdl.handle.net/10217/206717 | |
| dc.language | English | |
| dc.language.iso | eng | |
| dc.publisher | Colorado State University. Libraries | |
| dc.relation.ispartof | Faculty Publications | |
| dc.rights | Ā©2018 Wiley Online Library. Original article has free access. https://onlinelibrary.wiley.com/doi/full/10.1002/cfp2.1007. | |
| dc.rights | Copyright and other restrictions may apply. User is responsible for compliance with all applicable laws. For information about copyright law, please see https://libguides.colostate.edu/copyright. | |
| dc.subject | financial planning | |
| dc.subject | household risk management | |
| dc.subject | longevity risk | |
| dc.subject | retirement plan | |
| dc.title | Household financial planning strategies for managing longevity risk | |
| dc.type | Text |
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