The saving patterns of retired US households pose a challenge to the basic life-cycle model
of saving. The observed patterns of out-of-pocket medical expenses, which rise quickly with …

This paper constructs a model of saving for retired single people that includes heterogeneity
in medical expenses and life expectancies, and bequest motives. We estimate the model …

Despite facing significant uncertainty about their lifespans and health care costs, most
retirees do not buy annuities or long-term care insurance. In this paper, I find that retirees' …

This chapter provides an overview of household finance. The first part summarizes key facts
regarding household financial behavior, emphasizing empirical regularities that are …

Retired households, especially those with high lifetime income, decumulate their wealth very
slowly, and many die leaving large estates. The three leading explanations for the …

The so‐called retirement‐savings puzzle is a phenomenon by which, contrary to what the
standard life‐cycle model predicts, households do not run down their wealth significantly …

The old age provisions of the Medicaid program were designed to insure retirees against
medical expenses. We estimate a structural model of savings and medical spending and …

We consider a life-cycle model with idiosyncratic risk in earnings, out-of-pocket medical and
nursing home expenses, and survival. Partial insurance is available through welfare …

Page 1 IMF STAFF DISCUSSION NOTE The Future of Saving: The Role of Pension System
Design in an Aging World David Amaglobeli, Hua Chai, Era Dabla-Norris, Kamil Dybczak …

This paper generates two main contributions. First, it provides a new theory of wealth
inequality that merges two empirically relevant forces generating inequality: bequest motives …