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Estimating pension wealth of ELSA respondents

Author

Listed:
  • James Banks

    (Institute for Fiscal Studies and University of Manchester)

  • Carl Emmerson

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Gemma Tetlow

    (Institute for Fiscal Studies)

Abstract

This paper explains the methodology used for calculating pension wealth for all individuals in the first wave of the English Longitudinal Study of Ageing (ELSA). We focus on the pension wealth of individuals aged between 50 and the state pension age. Both state and private pension wealth has been calculated and each has been calculated both on the basis of immediate retirement in 2002 and on the basis of retirement at the state pension age. Sensitivity analysis of our assumptions is also presented, which shows that the distribution of pension wealth is sensitive to our assumptions about the discount rate and contracting out histories but insensitive to assumptions about future earnings growth, future annuity rates and future asset returns.

Suggested Citation

  • James Banks & Carl Emmerson & Gemma Tetlow, 2005. "Estimating pension wealth of ELSA respondents," IFS Working Papers W05/09, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:05/09
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    References listed on IDEAS

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    1. Richard Blundell & Costas Meghir & Sarah Smith, 2002. "Pension Incentives and the Pattern of Early Retirement," Economic Journal, Royal Economic Society, vol. 112(478), pages 153-170, March.
    2. Feldstein, Martin & Liebman, Jeffrey B., 2002. "Social security," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 32, pages 2245-2324, Elsevier.
    3. Jonathan Gruber & David A. Wise, 2004. "Social Security Programs and Retirement around the World: Micro-Estimation," NBER Books, National Bureau of Economic Research, Inc, number grub04-1, January.
    4. Martin Feldstein, 1998. "Privatizing Social Security," NBER Books, National Bureau of Economic Research, Inc, number feld98-1, January.
    5. Richard Disney & Carl Emmerson & Matthew Wakefield, 2008. "Pension Provision and Retirement Saving: Lessons from the United Kingdom," Canadian Public Policy, University of Toronto Press, vol. 34(s1), pages 155-176, November.
    6. Clark, Tom & Emmerson, Carl, 2003. "Privatising provision and attacking poverty? The direction of UK Pension Policy under new Labour," Journal of Pension Economics and Finance, Cambridge University Press, vol. 2(1), pages 67-89, March.
    7. Alan Budd & Nigel Campbell, 1998. "The Roles of the Public and Private Sectors in the U.K. Pension System," NBER Chapters, in: Privatizing Social Security, pages 99-134, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Sanna Nivakoski, 2020. "Wealth and the effect of subjective survival probability," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(2), pages 633-670, April.
    2. Antoine BozioBy & Carl Emmerson & Cormac O’Dea & Gemma Tetlow, 2017. "Do the rich save more? Evidence from linked survey and administrative data," Oxford Economic Papers, Oxford University Press, vol. 69(4), pages 1101-1119.
    3. Ferran Espuny Pujol & Ruth Hancock & Morten Hviid & Marcello Morciano & Stephen Pudney, 2021. "Market concentration, supply, quality and prices paid by local authorities in the English care home market," Health Economics, John Wiley & Sons, Ltd., vol. 30(8), pages 1886-1909, August.
    4. Antoine Bozio & Carl Emmerson & Cormac O'Dea & Gemma Tetlow, 2013. "Savings and wealth of the lifetime rich: evidence from the UK and US," IFS Working Papers W13/30, Institute for Fiscal Studies.
    5. Behncke S, 2009. "How Does Retirement Affect Health?," Health, Econometrics and Data Group (HEDG) Working Papers 09/11, HEDG, c/o Department of Economics, University of York.
    6. Jean Gardiner & Andrew M Robinson & Fathi Fakhfakh, 2016. "Exploring the private pension gender gap and occupation in later working life," Work, Employment & Society, British Sociological Association, vol. 30(4), pages 687-707, August.
    7. Olivera, Javier, 2019. "The distribution of pension wealth in Europe," The Journal of the Economics of Ageing, Elsevier, vol. 13(C), pages 30-42.
    8. Carpio, Miguel Angel, 2011. "Do pension wealth, pension cost and the nature of pension system affect coverage? Evidence from a country where pay-as-you-go and funded systems coexist," MPRA Paper 34926, University Library of Munich, Germany.
    9. Ximena Quintanilla, 2011. "Did Chileans Maximize Pensions when Choosing between PAYG and DC?," Working Papers 46, Superintendencia de Pensiones, revised Sep 2011.
    10. Jinkook Lee, 2010. "Data sets on pensions and health: Data collection and sharing for policy design," International Social Security Review, John Wiley & Sons, vol. 63(3‐4), pages 197-222, July.
    11. Ximena Quintanilla, 2011. "The effect of the Chilean Pension Reform on Wealth Accumulation," Working Papers 47, Superintendencia de Pensiones, revised Sep 2011.
    12. Frank Cowell & Brian Nolan & Javier Olivera & Philippe Van Kerm, 2017. "Wealth, Top Incomes and Inequality," LWS Working papers 24, LIS Cross-National Data Center in Luxembourg.
    13. Stefanie Behncke, 2012. "Does retirement trigger ill health?," Health Economics, John Wiley & Sons, Ltd., vol. 21(3), pages 282-300, March.

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