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Asset rundown after retirement: the importance of rate of return shocks

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  • Olesya Baker
  • Phil Doctor
  • Eric French

Abstract

The authors provide evidence that households run down their assets after retirement by tracking a group of elderly households over the 1996?2004 period. They find that assets decline for these households approaching the end of the life cycle. Had there not been a run-up in asset prices due in large part to a historically remarkable rise in housing prices, assets would have declined even faster.

Suggested Citation

  • Olesya Baker & Phil Doctor & Eric French, 2007. "Asset rundown after retirement: the importance of rate of return shocks," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 31(Q II), pages 48-65.
    • Handle: RePEc:fip:fedhep:y:2007:i:qii:p:48-65:n:v.31no.2
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    References listed on IDEAS

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    Cited by:

    1. Mariacristina De Nardi & Eric French & John B. Jones, 2010. "Why Do the Elderly Save? The Role of Medical Expenses," Journal of Political Economy, University of Chicago Press, vol. 118(1), pages 39-75, February.
    2. Mariacristina De Nardi & Eric French & John Bailey Jones, 2016. "Savings After Retirement: A Survey," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 177-204, October.
    3. Wise, David Alsgaard & Poterba, James M. & Venti, Steven F., 2011. "The Drawdown of Personal Retirement Assets," Scholarly Articles 4677548, Harvard Kennedy School of Government.
    4. Steven James Lee, 2021. "Does Fixed Income Buffer against Fraud Shocks?," JRFM, MDPI, vol. 14(10), pages 1-22, October.

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