www.ebri.org The views expressed in this statement are solely those of Jack VanDerhei and should not be attributed to the Employee Benefit Research Institute (EBRI), the EBRI Education and Research Fund, any of its programs, officers, trustees, sponsors, or other staff. The Employee Benefit Research Institute is a nonprofit, nonpartisan, education and research organization established in Washington, DC, in 1978. EBRI does not take policy positions, nor does it lobby, advocate specific policy recommendations, or receive federal funding.

KTI/IE Discussion Papers are circulated to promote discussion and provoque comments. Any references to discussion papers should clearly state that the paper is preliminary. Materials published in this series may subject to further publication.

Individuals ability to work declines with aging ⇒ Individuals continue to live after they are unwilling/unable to work Standard Model Prediction: Absent any government program, rational individual would save while working to consume savings while retired Optimal saving problem is extremely complex

KTI/IE Discussion Papers are circulated to promote discussion and provoque comments. Any references to discussion papers should clearly state that the paper is preliminary. Materials published in this series may subject to further publication. When and How to Subsidize Tax-Favored Retirement

The present paper studies the growth, welfare and efficiency consequences of the recent introduction of tax-favored retirement accounts in Germany in a general equilibrium overlapping generations model with idiosyncratic lifespan and labor income uncertainty. We focus on the implicit differential

This paper analyzes a randomized experiment to shed light on the role of information and social interactions in employees’ decisions to enroll in a Tax Deferred Account (TDA) retirement plan within a large university. The experiment encouraged a random sample of employees in a subset

that the DP model is able to account for wide variety of phenomena observed in the data, including the pronounced peaks in the distribution of retirement ages at 62 and 65 (the ages of early and normal eligibility for Social Security benefits, respectively). We identify a significant fraction of “health

This paper uses historical U.S. data to directly estimate the contri-bution of intergenerational transfers to aggregate capital accumula-tion. The evidence presented indicates that intergenerational trans-fers account for the vast majority of aggregate U.S. capital forma-tion; only a negligible

. In virtually every country employees are leaving the labor force at younger and younger ages. In some countries, the labor force participation rates of 60 to 64 year old men have fallen by 75 % over the past three decades. What accounts for the striking decline in labor force participation? One explanation

In general, retirement is seen as a pure labor supply phenomenon, but firms can have strong incentives to send expensive older workers into retirement. Based on the seniority wage model developed by Lazear (1979), we discuss steep senior-ity wage profiles as incentives for firms to dismiss older