Individuals' Uncertainty about Future Social Security Benefits and Portfolio Choice

TitleIndividuals' Uncertainty about Future Social Security Benefits and Portfolio Choice
Publication TypeReport
Year of Publication2010
AuthorsDelavande, A, Rohwedder, S
InstitutionSanta Monica, RAND Corporation Publications Department Working Papers
KeywordsConsumption and Savings, End of life decisions, Expectations, Income, Methodology, Net Worth and Assets
Abstract

Little is known about the degree to which individuals are uncertain about their future Social Security benefits, how this varies within the U.S. population, and whether this uncertainty influences financial decisions related to retirement planning. To illuminate these issues, the authors present empirical evidence from the Health and Retirement Study Internet Survey and document systematic variation in respondents' uncertainty about their future Social Security benefits by individual characteristics. They find that respondents with higher levels of uncertainty about future benefits hold a smaller share of their wealth in stocks.

Notes

RAND Corporation Publications Department Working Paper

URLhttp://www.rand.org/pubs/working_papers/2010/RAND_WR782.pdf
Endnote Keywords

Investment/Personal Finance/Personal Finance/Criteria for Decision-Making under Risk and Uncertainty/Criteria for Decision Making under Risk and Uncertainty/Econometrics/expectations, portfolio choice, subjective probabilities,/uncertatinty, Health and Retirement Study

Endnote ID

24450

Citation Key5810